PTC Inc (PTC)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	588,615	517,667	534,871	480,134	461,983	490,401	492,575	485,786	451,366	481,081	438,192	421,669	442,232	327,287	319,816	268,930	211,134	188,056	134,211	63,778
Interest expense (ttm)	US$ in thousands	119,653	130,403	138,454	148,393	129,417	109,004	86,926	57,640	54,268	51,839	51,259	51,945	50,477	49,673	56,155	75,848	76,428	74,948	66,104	44,869
Interest coverage		4.92	3.97	3.86	3.24	3.57	4.50	5.67	8.43	8.32	9.28	8.55	8.12	8.76	6.59	5.70	3.55	2.76	2.51	2.03	1.42

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $588,615K ÷ $119,653K
= 4.92

The interest coverage ratio for PTC Inc has shown fluctuations over the past few quarters. The ratio indicates the company's ability to meet its interest payments on outstanding debt obligations from its operating income.

Looking at the trend, the interest coverage ratio has generally been above 1, indicating that PTC Inc has generated enough operating income to cover its interest expenses. However, the ratio has varied significantly, ranging from a low of 1.42 to a high of 9.28.

In more recent quarters, the interest coverage ratio has been relatively stable, with values ranging from 3.24 to 4.92. This suggests that PTC Inc has been able to comfortably cover its interest obligations with its operating income during these periods.

Overall, a higher interest coverage ratio indicates a stronger ability to meet interest payments and signifies better financial health and stability for the company. Investors and creditors often consider this ratio when assessing a company's creditworthiness and risk level.