Schneider National Inc (SNDR)

Interest coverage

		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	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	161,000	215,300	320,300	431,400	551,800	621,000	613,600	653,100	633,600	604,600	554,500	477,200	390,400	310,600	296,500	271,200	238,200	223,500	214,700	255,700
Interest expense (ttm)	US$ in thousands	15,700	13,800	14,200	12,600	11,400	11,200	9,600	9,900	11,100	11,900	12,500	12,800	12,900	13,200	13,600	14,000	14,400	16,500	16,600	17,200
Interest coverage		10.25	15.60	22.56	34.24	48.40	55.45	63.92	65.97	57.08	50.81	44.36	37.28	30.26	23.53	21.80	19.37	16.54	13.55	12.93	14.87

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $161,000K ÷ $15,700K
= 10.25

Schneider National Inc's interest coverage ratio has shown a generally upward trend over the past few quarters, indicating the company's improving ability to cover its interest expenses with operating profits. The interest coverage ratio was at its lowest in December 2019 at 12.93, but has since seen a steady increase, reaching a high of 65.97 in September 2022. This suggests that the company has been generating significantly more earnings compared to its interest obligations.

The consistent improvement in the interest coverage ratio signifies Schneider National Inc's strengthening financial position and reduced risk of default on its debt obligations. The company's ability to comfortably cover its interest payments over time also reflects positively on its profitability and cash flow generation. Investors and lenders may view this trend favorably, as it indicates a lower likelihood of financial distress and greater stability in meeting debt obligations.