Somnigroup International Inc. (SGI)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 609,600 | 590,500 | 575,400 | 586,700 | 628,300 | 646,200 | 630,600 | 677,700 | 783,600 | 832,600 | 895,500 | 889,100 | 828,500 | 760,700 | 608,200 | 528,400 | 420,400 | 358,800 | 385,700 | 349,900 |
| Interest expense (ttm) | US$ in thousands | 33,700 | 65,400 | 131,400 | 129,900 | 130,600 | 124,800 | 114,900 | 103,000 | 91,900 | 78,600 | 74,900 | 66,300 | 61,800 | 68,400 | 69,000 | 77,000 | 81,000 | 81,700 | 83,600 | 85,700 |
| Interest coverage | 18.09 | 9.03 | 4.38 | 4.52 | 4.81 | 5.18 | 5.49 | 6.58 | 8.53 | 10.59 | 11.96 | 13.41 | 13.41 | 11.12 | 8.81 | 6.86 | 5.19 | 4.39 | 4.61 | 4.08 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $609,600K ÷ $33,700K
= 18.09
Somnigroup International Inc.'s interest coverage ratio has shown fluctuating trends over the analyzed period. The interest coverage ratio indicates the company's ability to service its interest obligations from its operating income.
From December 31, 2019, to June 30, 2021, the interest coverage ratio steadily increased from 4.08 to 11.12, indicating an improvement in the company's ability to cover its interest expenses with its operating income.
However, from September 30, 2021, to December 31, 2021, the interest coverage ratio remained constant at 13.41, suggesting a stabilization in the company's ability to meet its interest payments.
Subsequently, the interest coverage ratio started to decline from March 31, 2022, reaching 4.38 by March 31, 2024. This decline may indicate increased financial risk for the company in covering its interest expenses with operating income.
The sharp increase in the interest coverage ratio to 18.09 by September 30, 2024, may be a positive sign, suggesting an enhanced ability to meet interest obligations during that period.
Overall, the fluctuating nature of Somnigroup International Inc.'s interest coverage ratio implies varying levels of financial risk and operational performance in meeting interest payment obligations throughout the analyzed period.
Peer comparison
Sep 30, 2024