PPG Industries Inc (PPG)
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 | 2,093,000 | 2,274,000 | 2,217,000 | 2,174,000 | 1,997,000 | 2,127,000 | 1,975,000 | 1,869,000 | 1,559,000 | 1,500,000 | 1,509,000 | 1,529,000 | 1,937,000 | 2,075,000 | 2,175,000 | 1,864,000 | 1,659,000 | 1,603,000 | 1,490,000 | 1,710,000 |
| Interest expense (ttm) | US$ in thousands | 241,000 | 241,000 | 238,000 | 243,000 | 247,000 | 243,000 | 225,000 | 196,000 | 167,000 | 144,000 | 128,000 | 121,000 | 121,000 | 122,000 | 126,000 | 136,000 | 138,000 | 140,000 | 139,000 | 133,000 |
| Interest coverage | 8.68 | 9.44 | 9.32 | 8.95 | 8.09 | 8.75 | 8.78 | 9.54 | 9.34 | 10.42 | 11.79 | 12.64 | 16.01 | 17.01 | 17.26 | 13.71 | 12.02 | 11.45 | 10.72 | 12.86 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,093,000K ÷ $241,000K
= 8.68
The interest coverage ratio of PPG Industries Inc has shown fluctuations over the periods presented in the data. The interest coverage ratio measures the company's ability to meet its interest payment obligations on debt from its operating income.
From March 31, 2020, to September 30, 2021, PPG Industries Inc had a relatively strong interest coverage ratio, ranging from 10.72 to 17.26, indicating that the company generated sufficient operating income to cover its interest expense comfortably during these periods.
However, from December 31, 2021, to December 31, 2024, the interest coverage ratio experienced a downward trend, dropping to a low of 8.09 by the end of December 2023. This might indicate a potential strain on the company's ability to cover its interest payments from operating income during these periods.
While a declining trend in the interest coverage ratio can be a cause for concern as it suggests a higher risk of default on debt obligations, it is essential to consider other factors such as the overall debt levels, profitability, and future business prospects of PPG Industries Inc to gain a more comprehensive understanding of its financial health and sustainability.
Peer comparison
Dec 31, 2024