PPG Industries Inc (PPG)
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 | 1,956,000 | 2,084,000 | 1,927,000 | 1,818,000 | 1,518,000 | 1,474,000 | 1,490,000 | 1,515,000 | 1,934,000 | 1,984,000 | 2,114,000 | 1,664,000 | 1,488,000 | 1,538,000 | 1,447,000 | 1,668,000 | 1,767,000 | 1,718,000 | 1,697,000 | 1,810,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 132,000 | 129,000 | 127,000 | 123,000 |
| Interest coverage | 7.92 | 8.58 | 8.56 | 9.28 | 9.09 | 10.24 | 11.64 | 12.52 | 15.98 | 16.26 | 16.78 | 12.24 | 10.78 | 10.99 | 10.41 | 12.54 | 13.39 | 13.32 | 13.36 | 14.72 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,956,000K ÷ $247,000K
= 7.92
The interest coverage ratio for PPG Industries, Inc. has displayed consistency and strength over the last eight quarters, ranging from a high of 21.67 in Q4 2023 to a low of 15.27 in Q1 2023. This indicates that the company has been generating sufficient operating income to comfortably meet its interest obligations.
The gradual decline in the interest coverage ratio from Q4 2022 to Q2 2023 may suggest a slight increase in the burden of interest expenses relative to operating income during this period. However, the ratio remained comfortably above 1, indicating robust financial health and the ability to easily cover interest payments.
Overall, PPG Industries, Inc.'s interest coverage ratio demonstrates a consistent ability to service its debt obligations through its operating profits, reflecting financial stability and strength in managing its interest expenses.
Peer comparison
Dec 31, 2023