Oshkosh Corporation (OSK)

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	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	Dec 31, 2018
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	837,600	769,200	629,900	471,300	372,300	359,700	455,800	524,800	592,100	585,100	490,400	478,700	488,700	564,400	703,600	745,600	797,000	795,800	761,200	742,000
Interest expense (ttm)	US$ in thousands	68,600	60,500	54,300	54,200	53,400	51,400	50,200	48,800	48,200	47,500	47,700	58,200	59,300	61,000	62,400	53,800	54,400	55,200	66,800	69,200
Interest coverage		12.21	12.71	11.60	8.70	6.97	7.00	9.08	10.75	12.28	12.32	10.28	8.23	8.24	9.25	11.28	13.86	14.65	14.42	11.40	10.72

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $837,600K ÷ $68,600K
= 12.21

Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations. Looking at the historical trend of Oshkosh Corp's interest coverage ratio, we observe a notable improvement over the quarters analyzed. The interest coverage ratio steadily increased from Q1 2022 to Q3 2023, indicating a better capacity to cover interest expenses with operating income. The ratio peaked at 18.53 in Q3 2023, reflecting a significant improvement compared to Q4 2022. Overall, the increasing trend in the interest coverage ratio suggests improved financial health and reduced risk of default for Oshkosh Corp in servicing its debt obligations over the analyzed quarters.