Sotera Health Co (SHC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 276,692 | 248,350 | 256,733 |
| Interest expense | US$ in thousands | 25,645 | 12,835 | 9,767 |
| Interest coverage | 10.79 | 19.35 | 26.29 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $276,692K ÷ $25,645K
= 10.79
Sotera Health Co's interest coverage ratio has shown fluctuations over the past five years. It decreased from 3.46 in 2021 to 0.96 in 2020, indicating a significant decrease in the company's ability to cover its interest expenses with operating income. However, in 2022, the interest coverage ratio improved to 3.10, suggesting better ability to meet interest obligations.
The most recent data for 2023 shows an interest coverage ratio of 1.94, which is lower than the ratios in 2021 and 2022 but higher than the ratios in 2020 and 2019. This indicates that the company's ability to cover its interest expenses with operating income has weakened compared to the previous years but has still improved from the low point in 2020.
Overall, Sotera Health Co's interest coverage ratio has been somewhat inconsistent, and investors and creditors may want to further evaluate the company's financial health and sustainability of its debt obligations.
Peer comparison
Dec 31, 2023