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