Ryder System Inc (R)

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 1,047,000 1,010,000 1,014,000 855,000 914,000 1,031,000 1,132,000 1,409,000 1,448,000 1,373,168 1,219,521 1,083,786 904,000 710,148 581,917 296,766 121,000 -31,146 -167,970 23,507
Interest expense (ttm) US$ in thousands 386,000 370,000 347,000 323,000 296,000 275,000 257,000 241,000 228,000 216,387 213,139 211,294 214,000 231,154 240,010 253,140 261,000 255,270 255,137 248,611
Interest coverage 2.71 2.73 2.92 2.65 3.09 3.75 4.40 5.85 6.35 6.35 5.72 5.13 4.22 3.07 2.42 1.17 0.46 -0.12 -0.66 0.09

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,047,000K ÷ $386,000K
= 2.71

The interest coverage ratio of Ryder System Inc has shown significant fluctuations over the past few years. The ratio was extremely low in the first half of 2020, indicating the company was struggling to cover its interest payments with its operating income. However, there was a notable improvement starting from March 2021, with the interest coverage ratio steadily increasing through the end of 2022.

The ratio peaked at 6.35 by the end of September 2022, indicating that the company was generating sufficient operating income to cover its interest expenses more than six times over. However, there was a slight decline in the interest coverage ratio in the following quarters, dropping to 2.65 by March 2024.

Overall, the trend in the interest coverage ratio of Ryder System Inc reflects improvements in the company's ability to meet its interest obligations from a very risky position in early 2020 to a relatively stable position by the end of 2022. The recent slight decrease in the ratio may warrant further monitoring to ensure the company maintains a healthy level of interest coverage in the future.


Peer comparison

Dec 31, 2024

Company name
Symbol
Interest coverage
Ryder System Inc
R
2.71
Avis Budget Group Inc
CAR
7.46
Hertz Global Holdings Inc
HTZ
5.69