Somnigroup International Inc. (SGI)
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 | 639,100 | 604,000 | 680,200 | 890,300 | 529,400 |
| Interest expense | US$ in thousands | 134,800 | 129,900 | 103,000 | 66,300 | 77,000 |
| Interest coverage | 4.74 | 4.65 | 6.60 | 13.43 | 6.88 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $639,100K ÷ $134,800K
= 4.74
The interest coverage ratio of Somnigroup International Inc. has shown fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was 6.88, indicating that the company generated operating income nearly 6.88 times more than the interest expenses in that year.
By December 31, 2021, the interest coverage ratio improved significantly to 13.43, suggesting a stronger ability to meet interest obligations from operating income.
However, in the following years, there was a decline in the interest coverage ratio. By December 31, 2024, the ratio decreased to 4.74, indicating a decline in the company's ability to cover interest expenses from operating income.
Overall, the company's interest coverage has been reasonably healthy, although there is a need to monitor the trend closely to ensure sustainable financial health in meeting interest obligations.
Peer comparison
Dec 31, 2024