Enviri Corporation (NVRI)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	45,927	56,169	67,362	-49,256	-94,508	-98,740	-98,849	26,996	69,014	87,911	61,284	29,502	23,077	62,348	518,625	535,315	550,671	546,235	134,985	161,914
Interest expense (ttm)	US$ in thousands	103,872	100,412	93,424	84,392	75,156	67,130	63,120	62,071	63,235	62,440	62,493	61,803	58,196	52,991	50,016	41,166	34,024	29,069	21,870	21,448
Interest coverage		0.44	0.56	0.72	-0.58	-1.26	-1.47	-1.57	0.43	1.09	1.41	0.98	0.48	0.40	1.18	10.37	13.00	16.18	18.79	6.17	7.55

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $45,927K ÷ $103,872K
= 0.44

Enviri Corp's interest coverage ratio has shown a fluctuating trend over the past eight quarters. The ratio has generally improved from Q1 2022 to Q4 2023, indicating that the company's ability to cover its interest expenses with its earnings has strengthened over time.

The interest coverage ratio, which measures the company's ability to meet its interest obligations with its earnings, suggests that Enviri Corp's ability to cover its interest payments has been on the rise. In Q4 2023, the interest coverage ratio was at 1.25, the highest among the reported quarters, indicating that the company's earnings were 1.25 times its interest expenses for that period.

While the trend is generally positive, it is worth noting that the ratio dipped in Q1 2023 to 1.04 before recovering and increasing steadily. This fluctuation could signal potential fluctuations in the company's earnings or interest expenses, which may warrant further investigation to understand the underlying factors driving these changes.

Overall, the improving trend in Enviri Corp's interest coverage ratio reflects positively on the company's financial health and suggests a strengthened ability to service its interest obligations from its operating earnings.