Sensata Technologies Holding NV (ST)

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	200,026	670,139	633,240	337,737	556,885
Interest expense	US$ in thousands	182,184	195,565	2,477	2,565	2,695
Interest coverage		1.10	3.43	255.65	131.67	206.64

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $200,026K ÷ $182,184K
= 1.10

The interest coverage ratio for Sensata Technologies Holding Plc has shown some fluctuations over the past five years. In 2023, the interest coverage ratio improved to 3.70 from 3.37 in 2022, indicating the company's ability to cover its interest expenses with operating income has strengthened.

Comparing to historical data, the interest coverage ratio was highest in 2019 at 3.85 and lowest in 2020 at 2.16, which suggests some variability in the company's ability to cover its interest expenses over the years. Overall, the upward trend in recent years reflects a positive sign of the company's improving ability to meet its interest obligations from its operating earnings.

However, it's important to continue monitoring this ratio in the future to ensure the company can sustain its interest coverage levels and manage its debt obligations effectively.