SPX Corp (SPXC)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 158,700 | 85,400 | 86,400 | 56,900 | 16,800 | 46,900 | 381,700 | 429,700 | 449,600 | 469,200 | 161,600 | 128,800 | 125,900 | 130,500 | 129,400 | 123,100 | 98,800 | 108,800 | 93,700 | 93,600 |
| Interest expense (ttm) | US$ in thousands | 27,200 | 20,000 | 12,400 | 9,300 | 9,300 | 9,500 | 10,400 | 11,500 | 13,300 | 15,500 | 16,500 | 17,900 | 18,400 | 19,400 | 19,900 | 20,400 | 21,000 | 21,800 | 22,700 | 22,500 |
| Interest coverage | 5.83 | 4.27 | 6.97 | 6.12 | 1.81 | 4.94 | 36.70 | 37.37 | 33.80 | 30.27 | 9.79 | 7.20 | 6.84 | 6.73 | 6.50 | 6.03 | 4.70 | 4.99 | 4.13 | 4.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $158,700K ÷ $27,200K
= 5.83
SPX Corp's interest coverage ratio provides insight into the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a greater ability to fulfill interest payments.
Looking at the data, we can observe fluctuations in SPX Corp's interest coverage ratio over time. The ratio has shown variability, ranging from as low as 1.81 to as high as 37.37. This variability suggests that the company's ability to cover its interest expenses has not been consistent.
In the most recent period, ending December 31, 2023, the interest coverage ratio stood at 5.83, indicating that the company generated operating income nearly six times greater than its interest expenses. This suggests a good ability to meet interest obligations.
It is important to note significant fluctuations in the interest coverage ratio over the quarters, with some periods showing exceptionally high ratios, such as 36.70 and 37.37, indicating a very strong ability to cover interest expenses. Conversely, there were periods with lower ratios, such as 1.81 and 4.13, suggesting a relatively weaker ability to cover interest payments during those specific quarters.
Overall, while SPX Corp's interest coverage ratio has fluctuated over time, the company has generally demonstrated a satisfactory ability to meet its interest obligations, with some quarters exhibiting particularly strong performance in this regard. Monitoring the trend of this ratio over time will be crucial in assessing the company's financial health and debt servicing capabilities.
Peer comparison
Dec 31, 2023