Saia Inc (SAIA)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	484,139	499,198	504,728	488,431	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
Interest expense (ttm)	US$ in thousands	8,930	6,886	4,343	2,389	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
Interest coverage		54.21	72.49	116.22	204.45	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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $484,139K ÷ $8,930K
= 54.21

Saia Inc's interest coverage ratio has shown a generally increasing trend over the past few years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a healthier financial position as it suggests the company is generating more than enough operating income to cover its interest expenses.

From March 31, 2020, to December 31, 2021, Saia Inc's interest coverage ratio steadily increased from 24.24 to 104.60, indicating improved financial strength and a reduced risk of default on its debt obligations. The peak in the ratio was observed on December 31, 2022, at 180.26, signifying a very strong ability to cover interest payments.

However, from March 31, 2023, to December 31, 2024, there was some volatility in the interest coverage ratio, with fluctuations ranging from 116.22 to 204.45. The decrease in the ratio in the second half of 2024 could indicate a potential strain on the company's ability to cover its interest expenses, although the ratio still remains above 1, indicating the company is earning enough to cover its interest payments.

Overall, Saia Inc's interest coverage ratio demonstrates a healthy financial position with an increasing trend in recent years, but it is important for investors and stakeholders to monitor any fluctuations in the ratio to assess the company's ability to service its debt obligations in the long term.