Enviri Corporation (NVRI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 16,345 | 110,417 | 102,018 | 91,905 | 90,761 | 67,520 | 75,013 | -35,604 | -49,141 | -31,630 | -29,786 | 102,388 | 116,154 | 109,576 | 82,678 | 44,707 | 24,960 | 30,356 | 69,341 | 84,311 |
| Interest expense (ttm) | US$ in thousands | 112,217 | 115,699 | 113,625 | 111,415 | 107,621 | 100,412 | 93,424 | 84,392 | 75,156 | 67,130 | 63,383 | 62,677 | 64,449 | 65,147 | 64,937 | 65,336 | 61,609 | 57,584 | 54,767 | 51,920 |
| Interest coverage | 0.15 | 0.95 | 0.90 | 0.82 | 0.84 | 0.67 | 0.80 | -0.42 | -0.65 | -0.47 | -0.47 | 1.63 | 1.80 | 1.68 | 1.27 | 0.68 | 0.41 | 0.53 | 1.27 | 1.62 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $16,345K ÷ $112,217K
= 0.15
The interest coverage ratio of Enviri Corporation has fluctuated over the period indicated in the data. The ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A ratio below 1 suggests that the company is not generating enough earnings to cover its interest expenses.
Enviri's interest coverage was relatively stable and healthy from March 2020 to June 2021, ranging between 1.27 and 1.80. This indicates that the company was comfortably able to cover its interest expenses during this period. However, from June 2022 to March 2023, the interest coverage ratio turned negative, signaling that Enviri's earnings were insufficient to cover its interest payments.
Subsequently, from June 2023 to December 2024, the interest coverage ratio improved and fluctuated between 0.67 and 0.95. While these ratios are still below 1, they suggest a slight recovery in Enviri's ability to cover its interest expenses compared to the negative ratios observed earlier.
Overall, Enviri Corporation experienced fluctuations in its interest coverage ratio, indicating periods of financial strain and recovery. It is important for the company to closely monitor and manage its financial performance to ensure sustainable and stable interest coverage ratios in the future.