Simpson Manufacturing Company Inc (SSD)
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 | 429,988 | 424,691 | 440,050 | 452,885 | 475,150 | 482,334 | 464,936 | 452,991 | 459,065 | 477,390 | 455,194 | 423,846 | 367,792 | 310,188 | 300,912 | 271,396 | 252,363 | 249,516 | 219,140 | 200,581 |
| Interest expense (ttm) | US$ in thousands | 4,886 | 8,259 | 7,108 | 5,721 | 5,940 | 10,594 | 9,302 | 8,597 | 8,027 | 848 | 848 | 849 | 851 | 2,259 | 2,266 | 2,274 | 2,283 | 2,001 | 2,010 | 2,019 |
| Interest coverage | 88.00 | 51.42 | 61.91 | 79.16 | 79.99 | 45.53 | 49.98 | 52.69 | 57.19 | 562.96 | 536.79 | 499.23 | 432.19 | 137.31 | 132.79 | 119.35 | 110.54 | 124.70 | 109.02 | 99.35 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $429,988K ÷ $4,886K
= 88.00
The interest coverage ratio for Simpson Manufacturing Company Inc has shown fluctuations over the years based on the data provided. The ratio indicates the company's ability to meet its interest obligations with its operating income.
As per the data:
- The interest coverage ratio improved from March 31, 2020, to June 30, 2022, showing a consistent upward trend.
- However, from September 30, 2022, the ratio started to decline significantly, reaching its lowest point on September 30, 2023.
- Despite the decline, there was a slight recovery observed by the end of December 31, 2023.
- The ratio remained relatively stable in the following periods until December 31, 2024.
Overall, the trend in interest coverage indicates periods of strong ability to cover interest expenses followed by a decline in the company's ability to do so. It is important for investors and creditors to monitor this ratio closely, as a lower interest coverage ratio may signal potential financial distress for the company.
Peer comparison
Dec 31, 2024