Envista Holdings Corp (NVST)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,500 | 327,400 | 385,600 | 33,300 | 270,700 |
| Interest expense | US$ in thousands | 63,400 | 38,400 | 54,100 | 62,500 | 3,500 |
| Interest coverage | 0.13 | 8.53 | 7.13 | 0.53 | 77.34 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,500K ÷ $63,400K
= 0.13
The interest coverage ratio of Envista Holdings Corp has fluctuated over the past five years. In 2019, the ratio was significantly high at 79.29, indicating a strong ability to cover interest expenses with operating earnings. However, this ratio dropped drastically in 2020 to 0.53, suggesting a potential strain on meeting interest obligations with operating profits alone.
Subsequently, there was a notable improvement in 2021 with an interest coverage ratio of 5.66, signifying a better ability to cover interest expenses compared to the previous year. The ratio further increased in 2022 to 8.31, which may indicate enhanced financial stability and improved profitability.
In the most recent year, 2023, the interest coverage ratio stands at 4.57, which while lower than the prior year, still indicates that the company's operating income is more than sufficient to cover its interest payments. Overall, Envista Holdings Corp's interest coverage has shown variability, but appears to have recovered from the significant decline observed in 2020.
Peer comparison
Dec 31, 2023