Envista Holdings Corp (NVST)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,500 | 299,800 | 321,400 | 303,500 | 327,400 | 328,200 | 350,000 | 376,600 | 385,600 | 384,000 | 363,200 | 160,700 | 30,500 | 10,700 |
| Interest expense (ttm) | US$ in thousands | 63,400 | 64,000 | 60,200 | 49,200 | 38,400 | 34,400 | 34,800 | 42,000 | 54,100 | 64,900 | 76,300 | 77,200 | 62,500 | 44,500 |
| Interest coverage | 0.13 | 4.68 | 5.34 | 6.17 | 8.53 | 9.54 | 10.06 | 8.97 | 7.13 | 5.92 | 4.76 | 2.08 | 0.49 | 0.24 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,500K ÷ $63,400K
= 0.13
Envista Holdings Corp's interest coverage has shown a decreasing trend from Q4 2022 to Q1 2023, then fluctuated slightly for the rest of 2023. The interest coverage ratio measures the company's ability to pay its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Envista's interest coverage ratio has remained above 4 for all quarters under review, suggesting that the company generates enough operating income to cover its interest expenses. However, the decreasing trend in the ratio from Q4 2022 to Q1 2023 may indicate that the company's ability to cover interest costs with its operating income has weakened slightly during that period.
Overall, Envista Holdings Corp's interest coverage appears generally healthy, but it would be advisable to continue monitoring the ratio to ensure that the company maintains a comfortable margin of safety in meeting its interest obligations.
Peer comparison
Dec 31, 2023