Schneider National Inc (SNDR)

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	168,800	320,300	613,600	554,500	296,500
Interest expense	US$ in thousands	16,600	14,200	9,600	12,500	13,600
Interest coverage		10.17	22.56	63.92	44.36	21.80

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $168,800K ÷ $16,600K
= 10.17

Based on the provided data for Schneider National Inc's interest coverage ratio, we observe a trend of fluctuation over the five-year period from December 31, 2020, to December 31, 2024.

- As of December 31, 2020, the interest coverage ratio stood at 21.80, indicating that the company's operating income was 21.80 times higher than its interest expenses. This level suggests a healthy ability to meet interest obligations.
- By December 31, 2021, the interest coverage ratio improved significantly to 44.36, reflecting a strengthened ability to cover interest costs with operating income.
- Subsequently, by December 31, 2022, the interest coverage ratio further increased to 63.92, reaching a peak level during the period. This signifies a robust capacity to service interest payments.
- However, by December 31, 2023, the interest coverage ratio decreased to 22.56, indicating a relative decline in the company's ability to cover interest expenses compared to the previous year.
- Finally, as of December 31, 2024, the interest coverage ratio dropped to 10.17, representing a significant reduction in the coverage of interest costs by operating income, which may raise concerns about the company's ability to meet interest obligations comfortably.

Overall, the fluctuation in Schneider National Inc's interest coverage ratio over the five-year period suggests varying levels of financial health and ability to service debt obligations. The decreasing trend in the later years could indicate potential challenges in managing interest expenses relative to operating income.