Rogers Corporation (ROG)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	85,300	144,432	117,182	67,334	110,481
Interest expense	US$ in thousands	10,500	9,710	2,011	10,075	14,751
Interest coverage		8.12	14.87	58.27	6.68	7.49

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $85,300K ÷ $10,500K
= 8.12

The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt. A higher ratio indicates that the company has more earnings available to cover interest payments.

Rogers Corp.'s interest coverage ratio has fluctuated over the past five years, ranging from a low of 6.93 in 2023 to a high of 50.19 in 2021. In 2023 and 2022, the interest coverage ratios were 6.93 and 7.06, respectively, indicating a slight decline in the company's ability to cover interest expenses compared to the previous years.

The significant drop in the interest coverage ratio in 2023 may indicate a decrease in earnings relative to interest expenses, which could raise concerns about the company's financial health and ability to meet its debt obligations.

In contrast, the exceptionally high interest coverage ratio of 50.19 in 2021 suggests that Rogers Corp. had ample earnings to comfortably cover its interest payments that year, reflecting strong financial performance and stability.

Overall, while the fluctuating interest coverage ratios demonstrate varying levels of financial strength and stability in different years, it is essential for Rogers Corp. to monitor and manage its earnings and debt levels effectively to ensure the continued ability to meet its interest obligations.