SPX Corp (SPXC)
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 | 158,700 | 16,800 | 449,400 | 122,200 | 98,800 |
| Interest expense | US$ in thousands | 27,200 | 9,300 | 13,100 | 18,400 | 21,000 |
| Interest coverage | 5.83 | 1.81 | 34.31 | 6.64 | 4.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $158,700K ÷ $27,200K
= 5.83
The interest coverage ratio for SPX Corp has shown fluctuations over the last five years. In 2023, the company's interest coverage ratio improved significantly to 5.83 compared to 1.81 in 2022. This indicates that the company's ability to cover its interest expenses with its operating income has strengthened.
However, it is worth noting that the interest coverage ratio was substantially higher in 2021 at 34.31, which may have been influenced by specific factors such as high operating income or lower interest expenses during that period. The ratio then decreased to 6.64 in 2020, before slightly declining to 4.70 in 2019.
Overall, the recent improvement in the interest coverage ratio for SPX Corp suggests a better ability to meet its interest obligations from operating profits, but it is essential to assess the underlying reasons behind the fluctuations observed in previous years to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023