RBC Bearings Incorporated (RBC)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 340,500 | 329,611 | 322,364 | 307,164 | 286,364 | 263,440 | 209,057 | 154,122 | 120,200 | 94,198 | 106,319 | 115,606 | 114,600 | 124,855 | 135,513 | 146,475 | 156,024 | 153,211 | 136,186 | 134,620 |
| Interest expense (ttm) | US$ in thousands | 78,700 | 81,568 | 83,168 | 81,368 | 76,668 | 68,563 | 59,511 | 56,981 | 41,500 | 28,242 | 16,721 | 1,294 | 1,400 | 1,494 | 1,633 | 1,763 | 1,885 | 2,305 | 3,036 | 4,009 |
| Interest coverage | 4.33 | 4.04 | 3.88 | 3.77 | 3.74 | 3.84 | 3.51 | 2.70 | 2.90 | 3.34 | 6.36 | 89.34 | 81.86 | 83.57 | 82.98 | 83.08 | 82.77 | 66.47 | 44.86 | 33.58 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $340,500K ÷ $78,700K
= 4.33
The interest coverage ratio for RBC Bearings Incorporated fluctuated over the periods analyzed, ranging from a low of 2.70 to a high of 89.34. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its earnings.
Looking at the trend, the interest coverage ratio improved significantly from the third quarter of 2021 through the first quarter of 2022, peaking at 89.34 in the fourth quarter of 2021. This substantial increase suggests that the company's earnings were more than sufficient to cover its interest expenses during this period.
However, in the subsequent quarters, the interest coverage ratio declined steadily but remained above 2.70, indicating the company still had the ability to cover its interest payments. The sharp decrease in the second quarter of 2022 could be an anomaly or may require further investigation.
Overall, while the interest coverage ratio of RBC Bearings Incorporated exhibited fluctuations over the periods studied, it generally remained at levels that suggest the company was meeting its interest payment obligations comfortably.
Peer comparison
Mar 31, 2024