Teledyne Technologies Incorporated (TDY)

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	1,035,300	997,100	624,600	485,000	494,700
Interest expense	US$ in thousands	77,300	89,300	90,800	15,300	21,000
Interest coverage		13.39	11.17	6.88	31.70	23.56

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,035,300K ÷ $77,300K
= 13.39

The interest coverage ratio of Teledyne Technologies Inc has exhibited fluctuations over the past five years.

On Dec 31, 2023, the interest coverage ratio was 13.38, indicating that the company's operating income was 13.38 times higher than its interest expenses for the year. This signifies a healthy ability to meet interest obligations from operating earnings.

Comparatively, on Jan 1, 2023, the interest coverage ratio slightly decreased to 10.88, still reflecting a strong ability to cover interest payments. However, on Jan 2, 2022, the ratio dropped to 5.99, which could indicate a moderate risk in meeting interest payments from operating income.

The interest coverage ratio significantly improved on Jan 3, 2021, reaching 31.38, suggesting a robust ability to cover interest expenses with operating income. Similarly, on Dec 29, 2019, the ratio was 23.41, indicating a strong performance in being able to pay interest obligations.

Overall, although there have been fluctuations in the interest coverage ratio over the past five years, the company has generally maintained a healthy ability to cover interest payments from operating income, with some years showing exceptionally strong performance in this aspect.