SPX Corp (SPXC)
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 | 301,100 | 222,800 | 36,400 | 83,200 | 100,100 |
| Interest expense | US$ in thousands | 45,700 | 27,200 | 9,300 | 13,300 | 18,400 |
| Interest coverage | 6.59 | 8.19 | 3.91 | 6.26 | 5.44 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $301,100K ÷ $45,700K
= 6.59
SPX Corp's interest coverage ratio has shown fluctuations over the past five years. As of December 31, 2020, the company had an interest coverage ratio of 5.44, indicating that it was able to cover its interest expenses 5.44 times over with its operating income.
By December 31, 2021, the interest coverage ratio improved to 6.26, suggesting that SPX Corp's ability to meet its interest obligations had strengthened. However, it decreased to 3.91 by the end of 2022, signaling a potential decline in the company's ability to cover its interest expenses effectively.
The trend reversed in the following years, with the interest coverage ratio increasing to 8.19 as of December 31, 2023, and then to 6.59 by December 31, 2024. These improvements indicate that SPX Corp was better positioned to meet its interest payments in those years.
Overall, the fluctuations in SPX Corp's interest coverage ratio highlight the importance of monitoring the company's financial performance and its ability to generate sufficient operating income to cover its interest expenses effectively.
Peer comparison
Dec 31, 2024