Newell Brands Inc (NWL)
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 | -260,000 | -432,000 | -187,000 | 9,000 | 392,000 | 828,000 | 1,127,000 | 1,152,000 | 1,016,000 | 1,021,000 | 1,060,000 | 892,000 | -727,000 | -759,000 | -1,991,000 | -1,924,000 | -492,000 | -507,800 | -7,464,900 | -7,612,000 |
| Interest expense (ttm) | US$ in thousands | 283,000 | 277,000 | 265,000 | 244,000 | 235,000 | 230,000 | 238,000 | 248,000 | 256,000 | 266,000 | 272,000 | 278,000 | 274,000 | 275,000 | 279,000 | 286,200 | 303,400 | 337,500 | 368,100 | 410,400 |
| Interest coverage | -0.92 | -1.56 | -0.71 | 0.04 | 1.67 | 3.60 | 4.74 | 4.65 | 3.97 | 3.84 | 3.90 | 3.21 | -2.65 | -2.76 | -7.14 | -6.72 | -1.62 | -1.50 | -20.28 | -18.55 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-260,000K ÷ $283,000K
= -0.92
The interest coverage ratio for Newell Brands Inc has exhibited a declining trend over the past eight quarters, indicating a potential weakening in the company's ability to meet its interest payment obligations from its operating income. The ratio has decreased from a high of 4.45 in Q2 2022 to just 1.24 in Q4 2023. This downward trend suggests that the company may be facing challenges in generating enough earnings to cover its interest expenses. It is important to closely monitor this trend to assess the company's financial health and ability to service its debt in the future.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Newell Brands Inc
NWL
-0.92
AptarGroup Inc
ATR
10.28
Armstrong World Industries Inc
AWI
9.45
Berry Global Group Inc
BERY
3.01