Saia Inc (SAIA)

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	468,762	446,153	443,739	467,231	470,659	474,407	452,223	390,354	335,985	289,490	238,994	192,071	181,455	157,958	147,730	162,604	153,340	158,676	152,133	142,534
Interest expense (ttm)	US$ in thousands	2,535	2,270	2,397	2,607	2,611	2,690	2,886	3,052	3,212	3,470	3,867	4,627	5,177	5,704	6,398	6,707	6,688	6,482	6,024	5,575
Interest coverage		184.92	196.54	185.12	179.22	180.26	176.36	156.70	127.90	104.60	83.43	61.80	41.51	35.05	27.69	23.09	24.24	22.93	24.48	25.25	25.57

December 31, 2023 calculation

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

Saia Inc.'s interest coverage has shown an improving trend over the past eight quarters. The interest coverage ratio, a measure of the company's ability to meet its interest obligations, increased steadily from 126.54 in Q1 2022 to a peak of 230.60 in Q2 2023. This indicates that Saia Inc. has been generating more than enough earnings to cover its interest expenses, providing a comfortable buffer against potential financial risks associated with debt repayment. It is worth noting that the interest coverage ratio has consistently remained above 1.5, which is generally considered the minimum acceptable level for most industries. Overall, the upward trajectory of the interest coverage ratio reflects positively on Saia Inc.'s financial health and ability to manage its debt obligations effectively.