Resideo Technologies Inc (REZI)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 547,000 | 498,000 | 500,000 | 492,000 | 486,000 | 501,000 | 499,000 | 447,000 | 401,000 | 399,000 | 386,000 | 258,000 | 164,000 | 61,000 | -11,000 | 31,000 | 140,000 | 188,000 | 148,000 |
| Interest expense (ttm) | US$ in thousands | 66,000 | 69,000 | 68,000 | 65,000 | 58,000 | 51,000 | 48,000 | 46,000 | 48,000 | 51,000 | 53,000 | 59,000 | 63,000 | 67,000 | 69,000 | 69,000 | 69,000 | 69,000 | 55,000 |
| Interest coverage | 8.29 | 7.22 | 7.35 | 7.57 | 8.38 | 9.82 | 10.40 | 9.72 | 8.35 | 7.82 | 7.28 | 4.37 | 2.60 | 0.91 | -0.16 | 0.45 | 2.03 | 2.72 | 2.69 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $547,000K ÷ $66,000K
= 8.29
The interest coverage ratio of Resideo Technologies Inc has shown a decreasing trend over the recent quarters, starting at 13.07 in Q1 2022 and decreasing to 9.06 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened over time. Despite the fluctuations, the ratio has remained above 1 in all periods, signaling that the company is generating enough operating income to cover its interest payments. However, a declining trend in interest coverage may raise concerns about the company's ability to service its debt obligations in the future if the trend continues. The company may need to closely monitor its financial performance and consider ways to improve its interest coverage ratio to ensure long-term financial stability.