Rogers Corporation (ROG)

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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	85,300	137,433	128,787	124,289	144,432	72,208	87,531	99,880	117,182	126,710	101,705	87,052	67,334	61,944	83,035	95,156	110,481	122,699	122,456	114,467
Interest expense (ttm)	US$ in thousands	10,527	12,958	13,895	12,336	9,710	6,618	3,832	2,521	2,012	1,553	5,409	8,268	10,075	18,179	15,910	14,888	14,651	11,600	10,000	8,100
Interest coverage		8.10	10.61	9.27	10.08	14.87	10.91	22.84	39.62	58.24	81.59	18.80	10.53	6.68	3.41	5.22	6.39	7.54	10.58	12.25	14.13

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $85,300K ÷ $10,527K
= 8.10

Interest coverage is a key financial ratio used to evaluate a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

In the case of Rogers Corp., the interest coverage ratio has been fluctuating over the past eight quarters. In Q4 2023, the interest coverage ratio was 6.93, indicating that the company's EBIT was 6.93 times higher than its interest expenses for that quarter. This ratio was lower compared to the previous quarter (Q3 2023) when it was 5.78.

Looking back further, the interest coverage ratio for Rogers Corp. was highest in Q1 2022 at 39.73, indicating a strong ability to meet its interest obligations at that time. However, the ratio has been declining since then, reaching its lowest point in Q2 2023 at 4.63.

Overall, the trend in Rogers Corp.'s interest coverage ratio suggests some variability in the company's ability to cover its interest expenses. It is important for investors and creditors to closely monitor this ratio to assess the company's financial health and its ability to service its debt obligations.