Newell Brands Inc (NWL)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 106,000 | 229,000 | 129,000 | 105,000 | 1,000 | -400,000 | 31,000 | 198,000 | 475,000 | 928,000 | 1,022,000 | 1,005,000 | 982,000 | 1,062,000 | 1,137,000 | 997,000 | -630,000 | -623,000 | -1,666,200 | -1,664,900 |
| Interest expense (ttm) | US$ in thousands | 295,000 | 293,000 | 287,000 | 285,000 | 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 | 275,700 | 278,900 | 286,100 |
| Interest coverage | 0.36 | 0.78 | 0.45 | 0.37 | 0.00 | -1.44 | 0.12 | 0.81 | 2.02 | 4.03 | 4.29 | 4.05 | 3.84 | 3.99 | 4.18 | 3.59 | -2.30 | -2.26 | -5.97 | -5.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $106,000K ÷ $295,000K
= 0.36
Newell Brands Inc's interest coverage ratio, which indicates the company's ability to meet interest payments on its debt, has shown fluctuations over the past few years. The company experienced negative interest coverage ratios in the first half of 2020, indicating that its earnings were insufficient to cover interest expenses. However, there has been a positive trend in the interest coverage ratio since then, with values steadily increasing from March 31, 2021, to June 30, 2022, peaking at 4.29. This suggests an improvement in Newell Brands' ability to cover its interest obligations with operating income.
Subsequently, the interest coverage ratio fluctuated around the 4.00 level in the second half of 2022 and the first half of 2023. From September 30, 2023, to December 31, 2023, the interest coverage ratio turned negative again, indicating a potential strain on the company's ability to cover interest payments with its earnings during that period. However, the ratio recovered and maintained positive values from March 31, 2024, to the end of the year.
Overall, Newell Brands Inc's interest coverage ratio has shown variability, with periods of both strength and weakness. Investors and stakeholders should continue to monitor the company's financial performance and debt management practices to ensure the sustainability of its interest coverage ratio.
Peer comparison
Dec 31, 2024