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

Company name
Symbol
Interest coverage
PPG Industries Inc
PPG
7.92
Axalta Coating Systems Ltd
AXTA
2.66
RPM International Inc
RPM
7.67