Saia Inc (SAIA)

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	484,938	468,762	470,659	335,985	181,455
Interest expense	US$ in thousands	8,930	2,535	2,611	3,212	5,177
Interest coverage		54.30	184.92	180.26	104.60	35.05

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $484,938K ÷ $8,930K
= 54.30

Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. The higher the interest coverage ratio, the more easily a company can cover its interest expenses.

When analyzing Saia Inc's interest coverage ratio over the past five years, we can observe an increasing trend. In December 2020, the interest coverage ratio stood at 35.05, indicating that the company generated 35 times more operating income than the interest expense incurred during that period.

Subsequently, the interest coverage ratio improved significantly to 104.60 in December 2021, further strengthening to 180.26 in December 2022, and reaching 184.92 in December 2023. These ratios suggest that Saia Inc's ability to cover its interest payments has consistently improved over these years, highlighting a robust financial position.

However, there was a slight decline in the interest coverage ratio to 54.30 in December 2024. While this ratio is lower compared to the previous years, it still indicates that Saia Inc is generating sufficient operating income to comfortably cover its interest expenses.

Overall, the upward trend in Saia Inc's interest coverage ratio demonstrates the company's capacity to manage its debt obligations effectively and indicates a healthy financial position.