Schneider National Inc (SNDR)

Interest coverage

Dec 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 168,800 154,500 161,000 215,300 320,300 431,400 551,800 621,000 613,600 653,100 633,600 604,600 554,500 477,200 390,400 310,600 296,500 271,200 238,200 223,500
Interest expense (ttm) US$ in thousands 16,600 16,000 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
Interest coverage 10.17 9.66 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

December 31, 2024 calculation

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

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

For Schneider National Inc, the interest coverage has shown a consistent upward trend from March 31, 2020, to June 30, 2022, steadily increasing from 13.55 to 57.08. This indicates an improving ability to cover interest payments with operating income during this period.

However, from September 30, 2022, to December 31, 2024, the interest coverage ratio fluctuated, with a peak of 65.97 on September 30, 2022, followed by a gradual decrease to 10.17 on December 31, 2024. This trend suggests a potential decrease in the company's ability to cover interest expenses with operating income during this later period.

Overall, Schneider National Inc's interest coverage ratio has demonstrated both strength and variability in its ability to meet interest obligations over the analyzed period. It is essential for investors and analysts to monitor this ratio closely to assess the company's financial health and evaluate its ability to manage debt effectively.