nVent Electric PLC (NVT)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 643,600 | 622,500 | 587,400 | 552,100 | 516,400 | 474,400 | 440,400 | 404,300 | 381,500 | 365,100 | 355,400 | 340,800 | 101,500 | 58,500 | 38,400 | 46,500 | 274,200 | 315,900 | 333,100 | 336,800 |
| Interest expense (ttm) | US$ in thousands | 147,500 | 145,200 | 130,800 | 63,400 | 46,000 | 31,800 | 31,200 | 30,700 | 30,800 | 31,400 | 32,300 | 33,000 | 33,300 | 34,600 | 36,400 | 38,500 | 41,600 | 44,100 | 44,700 | 43,600 |
| Interest coverage | 4.36 | 4.29 | 4.49 | 8.71 | 11.23 | 14.92 | 14.12 | 13.17 | 12.39 | 11.63 | 11.00 | 10.33 | 3.05 | 1.69 | 1.05 | 1.21 | 6.59 | 7.16 | 7.45 | 7.72 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $643,600K ÷ $147,500K
= 4.36
The interest coverage ratio for nVent Electric PLC has shown fluctuation over the past few quarters. A higher interest coverage ratio indicates the company's ability to easily meet its interest obligations from its operating income.
nVent Electric PLC's interest coverage ratio ranged from a low of 1.05 in March 2021 to a high of 14.92 in March 2023. The ratio experienced a significant improvement from March 2021 to March 2023, indicating a substantial increase in the company's ability to cover its interest expenses.
The ratio then decreased from March 2023 to September 2024, signaling a slight decline in the company's ability to cover its interest expenses with operating income. However, with a ratio above 4 for all the reported periods, nVent Electric PLC continues to maintain a healthy interest coverage ratio, which suggests it has sufficient earnings to meet its interest obligations comfortably.
Overall, while the interest coverage ratio has fluctuated over the various reporting periods, the company continues to demonstrate a strong ability to meet its interest payments from operating income. It is important for stakeholders to monitor this ratio to ensure the company can continue to meet its debt obligations effectively in the long term.
Peer comparison
Jun 30, 2024