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.