Ryder System Inc (R)
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 | 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 | 197,972 | 425,642 | 620,286 | 600,054 |
| Interest expense (ttm) | US$ in thousands | 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 | 241,381 | 230,258 | 215,583 | 197,575 |
| Interest coverage | 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 | 0.82 | 1.85 | 2.88 | 3.04 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $914,000K ÷ $296,000K
= 3.09
Based on the data provided, Ryder System, Inc.'s interest coverage has shown a declining trend over the past few quarters. The interest coverage ratio, which represents the company's ability to meet its interest obligations from its operating income, has decreased from 6.25 in Q4 2022 to 3.63 in Q4 2023.
While the interest coverage ratios in Q1 to Q3 2023 show slight improvements compared to Q4 2023, they are still lower than the ratios in the corresponding quarters of the previous year. This indicates that Ryder System, Inc. may be experiencing challenges in generating sufficient operating income to cover its interest expenses.
Overall, the decreasing trend in interest coverage ratios highlights a potential strain on the company's ability to meet its interest payments with its current level of operating income. It may be important for investors and stakeholders to monitor this metric closely to assess Ryder System, Inc.'s financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023