Teledyne Technologies Incorporated (TDY)

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	1,035,300	1,040,300	1,029,400	1,016,400	997,100	918,700	857,000	726,300	638,000	586,500	518,600	516,900	485,000	474,700	479,800	501,500	494,700	471,700	449,000	426,800
Interest expense (ttm)	US$ in thousands	77,300	84,200	87,800	88,000	89,300	90,300	92,100	90,800	104,200	84,100	64,400	46,900	15,300	16,600	18,000	19,700	21,000	25,700	26,200	27,500
Interest coverage		13.39	12.36	11.72	11.55	11.17	10.17	9.31	8.00	6.12	6.97	8.05	11.02	31.70	28.60	26.66	25.46	23.56	18.35	17.14	15.52

December 31, 2023 calculation

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

Teledyne Technologies Inc's interest coverage ratios have exhibited a generally positive trend over the past year, reflecting the company's ability to comfortably meet its interest obligations. The interest coverage ratio has steadily increased from 7.85 in Q1 2022 to 13.38 in Q4 2023. This indicates that Teledyne Technologies has been generating more than enough operating income to cover the interest expenses on its outstanding debt.

The consistent improvement in the interest coverage ratio suggests that the company's profitability and operational efficiency have been strengthening over time. Investors and creditors often view a higher interest coverage ratio as a positive signal of financial health and stability, as it demonstrates the company's capacity to service its debt obligations even in challenging economic conditions.

Overall, Teledyne Technologies Inc's robust interest coverage ratios highlight its strong financial position and ability to manage its debt obligations effectively.