Schneider National Inc (SNDR)

Interest coverage

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 320,300 613,600 554,500 296,500 214,700
Interest expense US$ in thousands 14,200 9,600 12,500 13,600 16,600
Interest coverage 22.56 63.92 44.36 21.80 12.93

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $320,300K ÷ $14,200K
= 22.56

The interest coverage ratio for Schneider National Inc has shown a fluctuating trend over the past five years. In 2022, the interest coverage ratio was significantly high at 63.92, indicating that the company's operating income was more than sufficient to cover its interest expenses. This was a positive sign of financial health and stability.

In 2023, the interest coverage ratio decreased to 22.56, which is still a healthy level indicating that the company's earnings before interest and taxes are more than 22 times its interest expenses. This shows that Schneider National Inc continues to generate enough income to comfortably cover its interest obligations.

Overall, the trend in the interest coverage ratio for Schneider National Inc suggests that the company has been effectively managing its interest expenses relative to its operating income, although there was some fluctuation in the ratio over the years. A high interest coverage ratio indicates a lower risk of default on debt obligations and reflects the company's ability to meet its financial obligations. Schneider National Inc's interest coverage ratio suggests a relatively stable financial position and ability to handle its debt obligations comfortably.