Saia Inc (SAIA)

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	468,762	470,659	335,985	181,455	153,340
Interest expense	US$ in thousands	2,535	2,611	3,212	5,177	6,688
Interest coverage		184.92	180.26	104.60	35.05	22.93

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $468,762K ÷ $2,535K
= 184.92

Interest coverage is a financial ratio that measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage indicates that a company is more capable of meeting its interest obligations.

Analyzing Saia Inc.'s interest coverage over the past five years, we observe a consistent improvement in its ability to cover interest expenses. The interest coverage ratio has shown a strong upward trend from 22.75 in 2019 to 180.21 in 2022, indicating a significant improvement. This trend suggests that Saia Inc. has been generating more operating income relative to its interest expenses, which is a positive sign of financial stability and risk management.

However, the data for 2023 is missing, making it difficult to draw a conclusion for that year. Nevertheless, based on the trend observed from 2019 to 2022, it can be inferred that Saia Inc. has been effectively managing its interest obligations and is likely maintaining a strong financial position. Further analysis would be required to understand the specific factors driving this improvement and to assess whether it is sustainable in the long term.