Plexus Corp (PLXS)

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	Dec 31, 2021	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	178,688	192,555	200,489	222,082	200,646	174,136	154,263	143,164	158,792	174,693	181,741	191,269	158,884	151,568	139,106	126,905	140,812	138,781	137,963	136,996
Interest expense (ttm)	US$ in thousands	32,265	31,542	28,956	24,648	19,706	15,858	13,473	12,740	13,213	14,253	15,322	16,120	16,116	16,162	15,682	15,405	14,736	12,853	11,149	10,348
Interest coverage		5.54	6.10	6.92	9.01	10.18	10.98	11.45	11.24	12.02	12.26	11.86	11.87	9.86	9.38	8.87	8.24	9.56	10.80	12.37	13.24

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $178,688K ÷ $32,265K
= 5.54

Plexus Corp's interest coverage ratio has shown a general upward trend over the past five years, indicating the company's improving ability to cover its interest expenses with operating income. The interest coverage ratio has consistently been above 5, suggesting that Plexus Corp generates sufficient earnings to meet its interest obligations comfortably.

The highest interest coverage ratio of 13.24 was reported in the first quarter of 2019, indicating a strong ability to service debt during that period. Since then, the ratio has fluctuated but generally remained above 8, demonstrating the company's consistent financial stability.

Overall, the trend in Plexus Corp's interest coverage ratio reflects a healthy financial position, with a gradual improvement in its ability to cover interest expenses over time. This suggests that the company has been effectively managing its debt and operating profitably.