SPX Corp (SPXC)
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 | 329,300 | 293,800 | 273,400 | 240,500 | 220,100 | 146,700 | 99,300 | 72,500 | 33,700 | 65,300 | 96,200 | 86,000 | 112,000 | 127,100 | 105,200 | 105,200 | 84,800 | 93,500 | 102,500 | 110,600 |
| Interest expense (ttm) | US$ in thousands | 45,700 | 43,900 | 42,000 | 34,600 | 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 |
| Interest coverage | 7.21 | 6.69 | 6.51 | 6.95 | 8.09 | 7.34 | 8.01 | 7.80 | 3.62 | 6.87 | 9.25 | 7.48 | 8.42 | 8.20 | 6.38 | 5.88 | 4.61 | 4.82 | 5.15 | 5.42 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $329,300K ÷ $45,700K
= 7.21
Interest coverage ratio is a financial metric used to evaluate a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Analyzing the interest coverage ratio of SPX Corp over the past few quarters, we observe a fluctuating trend. As of December 31, 2024, the interest coverage ratio stood at 7.21, showing that the company generated 7.21 times the operating income relative to its interest expenses. This indicates a strong ability to cover its interest obligations.
However, it is important to note that the interest coverage ratio has varied over the reporting periods, with a peak of 9.25 on June 30, 2022, and a low of 3.62 on December 31, 2022. These fluctuations can suggest changes in the company's operating performance and financial stability.
Overall, a consistently high interest coverage ratio is a positive sign for SPX Corp, as it indicates a healthy financial position and the ability to comfortably meet its interest payments. Management should continue to monitor and manage the company's financial performance to ensure sustainable profitability and liquidity.
Peer comparison
Dec 31, 2024