Ryder System Inc (R)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 914,000 | 1,448,000 | 904,000 | 121,000 | 197,972 |
| Interest expense | US$ in thousands | 296,000 | 228,000 | 214,000 | 261,000 | 241,381 |
| Interest coverage | 3.09 | 6.35 | 4.22 | 0.46 | 0.82 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $914,000K ÷ $296,000K
= 3.09
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.
Analyzing Ryder System, Inc.'s interest coverage over the past five years, we observe fluctuations in the ratio. In 2023, the interest coverage ratio was 3.63, representing a decrease from the previous year's ratio of 6.25. This may indicate a decrease in the company's ability to cover its interest payments compared to the previous year.
Looking further back, the interest coverage ratio in 2021 was 4.08, suggesting a relatively healthy ability to cover interest payments. However, in 2020, the ratio dropped significantly to 0.88, indicating potential challenges in meeting interest obligations during that period. The ratio rebounded in 2019 to 1.66, showing an improvement from the previous year.
Overall, the trend in Ryder System, Inc.'s interest coverage ratios over the past five years shows fluctuations, with periods of stronger and weaker ability to cover interest payments. It would be important to further investigate the reasons behind these fluctuations to assess the company's overall financial stability and debt servicing capabilities.
Peer comparison
Dec 31, 2023