Rogers Corporation (ROG)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	35,900	87,600	150,612	129,357	80,681
Interest expense	US$ in thousands	1,600	11,300	9,547	2,536	7,135
Interest coverage		22.44	7.75	15.78	51.01	11.31

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $35,900K ÷ $1,600K
= 22.44

Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations on outstanding debt.

For Rogers Corporation, the interest coverage ratio has fluctuated over the past five years:
- As of December 31, 2020, the interest coverage ratio was 11.31, indicating that the company generated operating income more than eleven times to cover its interest expenses.
- The ratio improved significantly to 51.01 by December 31, 2021, suggesting a robust ability to cover interest payments.
- In the following years, the interest coverage ratio decreased to 15.78 by December 31, 2022, indicating a decline in the company's ability to cover interest expenses.
- By December 31, 2023, the ratio further dropped to 7.75, signaling a potential strain on meeting interest obligations.
- However, by December 31, 2024, the interest coverage ratio recovered to 22.44, showing an improvement in the company's ability to cover its interest payments.

Overall, while the interest coverage ratio for Rogers Corporation has shown some volatility in recent years, it is essential for investors and creditors to monitor this trend to assess the company's financial health and its ability to manage debt effectively.