Oshkosh Corporation (OSK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 837,600 | 372,300 | 592,100 | 484,800 | 797,000 |
| Interest expense | US$ in thousands | 2,800 | 1,600 | 1,600 | 3,600 | 1,600 |
| Interest coverage | 299.14 | 232.69 | 370.06 | 134.67 | 498.12 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $837,600K ÷ $2,800K
= 299.14
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest payments.
Oshkosh Corp's interest coverage has shown fluctuations over the past five years. It increased from 16.74 in 2019 to 15.57 in 2023, which indicates the company's improved ability to cover its interest expenses. However, it decreased in 2022 to 8.66 before increasing again in 2023.
The fluctuations in the interest coverage ratio may be influenced by changes in the company's operating income and interest expenses. Overall, Oshkosh Corp has demonstrated a reasonable ability to cover its interest payments based on the interest coverage ratios observed in the past five years.
Peer comparison
Dec 31, 2023