Oshkosh Corporation (OSK)

Interest coverage

		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	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,002,200	992,500	966,500	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
Interest expense (ttm)	US$ in thousands	110,300	96,300	77,600	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
Interest coverage		9.09	10.31	12.45	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

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,002,200K ÷ $110,300K
= 9.09

The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt with its operating income. A higher ratio indicates a stronger ability to cover interest obligations.

Analyzing Oshkosh Corporation's interest coverage ratio over the past few quarters, we can observe fluctuations in the ratio. In the most recent quarter, as of September 30, 2024, the interest coverage ratio stood at 9.09, indicating that the company's operating income was able to cover its interest expenses approximately 9 times. This ratio has generally remained healthy, with values above 8 for most quarters.

The trend in Oshkosh Corporation's interest coverage ratio displays some variability, with fluctuations ranging between 6.97 and 14.65 over the past few years. The company has shown the ability to comfortably cover its interest expenses, with higher ratios indicating a more sustainable financial position.

Overall, the analysis of Oshkosh Corporation's interest coverage ratio suggests that the company has generally maintained a strong ability to meet its interest payment obligations using its operating income, but should continue to be monitored for any significant changes that could impact its financial health.