Oshkosh Corporation (OSK)

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	1,074,300	1,059,300	1,048,600	981,000	852,100	783,700	630,000	454,500	353,000	219,100	213,700	349,000	464,200	546,100	582,400	498,500	483,400	498,400	565,300	704,200
Interest expense (ttm)	US$ in thousands	119,500	110,300	96,300	77,600	68,600	60,500	54,300	54,200	53,400	51,700	50,500	49,500	48,700	48,200	47,500	47,700	58,200	59,300	61,000	62,400
Interest coverage		8.99	9.60	10.89	12.64	12.42	12.95	11.60	8.39	6.61	4.24	4.23	7.05	9.53	11.33	12.26	10.45	8.31	8.40	9.27	11.29

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,074,300K ÷ $119,500K
= 8.99

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a better ability to meet interest obligations. Analyzing Oshkosh Corporation's interest coverage over the past few years, we observe fluctuations in the ratio.

As of December 31, 2024, Oshkosh Corporation's interest coverage ratio stands at 8.99, which indicates the company's operating income is 8.99 times its interest expenses. This suggests that Oshkosh has a healthy ability to meet its interest payments from its operating earnings.

Looking at the trend from December 31, 2020 (8.31) to December 31, 2024 (8.99), we see a general upward trajectory in the interest coverage ratio. However, it is essential to note that there have been variations in the ratio over the quarters within this period.

Oshkosh saw a peak in interest coverage on March 31, 2024 (12.64), indicating a substantial increase in the company's ability to cover interest expenses. On the other hand, the lowest interest coverage was recorded on June 30, 2022 (4.23) and September 30, 2022 (4.24), reflecting a temporary weakness in the company's ability to cover interest payments during that period.

Overall, Oshkosh Corporation's interest coverage ratio has shown resilience and generally improved over the years, indicating a favorable ability to manage its interest expenses with its operating income. However, periodic fluctuations in the ratio highlight the importance of monitoring the company's financial performance continuously.