Pentair PLC (PNR)
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 | 803,800 | 775,700 | 775,900 | 736,400 | 739,200 | 683,800 | 650,800 | 633,100 | 595,300 | 634,400 | 654,600 | 625,600 | 636,900 | 607,700 | 568,500 | 517,800 | 461,400 | 462,200 | 442,900 | 465,600 |
| Interest expense (ttm) | US$ in thousands | 88,600 | 100,000 | 107,700 | 113,200 | 118,300 | 91,700 | 65,500 | 38,800 | 9,000 | 10,000 | 11,300 | 10,000 | 12,500 | 15,400 | 18,200 | 22,100 | 23,900 | 26,500 | 28,000 | 29,700 |
| Interest coverage | 9.07 | 7.76 | 7.20 | 6.51 | 6.25 | 7.46 | 9.94 | 16.32 | 66.14 | 63.44 | 57.93 | 62.56 | 50.95 | 39.46 | 31.24 | 23.43 | 19.31 | 17.44 | 15.82 | 15.68 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $803,800K ÷ $88,600K
= 9.07
The interest coverage ratio of Pentair PLC has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The ratio has steadily increased from 15.68 in March 2020 to a peak of 66.14 in December 2022, indicating the company's ability to comfortably cover its interest expenses with operating income.
However, there was a notable decline in the interest coverage ratio from March 2023 to June 2024, dropping from 16.32 to 7.20, before showing some slight improvement by December 2024 at 9.07. This decrease could suggest a potential strain on Pentair PLC's ability to cover its interest obligations with its earnings during that period.
Overall, despite some fluctuations, Pentair PLC has generally maintained a healthy interest coverage ratio, reflecting its capacity to meet its interest payments and manage its debt obligations efficiently. Further monitoring of the trend in the interest coverage ratio will be essential to assess the company's financial health and ability to service its debt in the future.
Peer comparison
Dec 31, 2024