TE Connectivity Ltd (TEL)
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 | 2,565,000 | 2,354,000 | 2,372,000 | 2,456,000 | 2,617,000 | 2,800,000 | 2,771,000 | 2,761,000 | 2,672,000 | 2,440,000 | 2,150,000 | 1,589,000 | 561,000 | 590,000 | 685,000 | 1,053,000 | 2,001,000 | 1,897,000 | 2,011,000 | 2,043,000 |
| Interest expense (ttm) | US$ in thousands | 77,000 | 80,000 | 79,000 | 77,000 | 75,000 | 66,000 | 62,000 | 58,000 | 53,000 | 56,000 | 54,000 | 53,000 | 51,000 | 48,000 | 49,000 | 49,000 | 53,000 | 68,000 | 82,000 | 95,000 |
| Interest coverage | 33.31 | 29.42 | 30.03 | 31.90 | 34.89 | 42.42 | 44.69 | 47.60 | 50.42 | 43.57 | 39.81 | 29.98 | 11.00 | 12.29 | 13.98 | 21.49 | 37.75 | 27.90 | 24.52 | 21.51 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,565,000K ÷ $77,000K
= 33.31
TE Connectivity Ltd has shown a consistently strong interest coverage ratio over the past few periods, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio has ranged from a low of 11.00 to a high of 50.42 over the last five years. The trend shows that the company's ability to cover interest expenses has generally been improving, with only occasional fluctuations. This indicates that TE Connectivity Ltd is effectively generating enough operating income to cover its interest expenses and is in a solid financial position with regards to its ability to meet debt obligations.
Peer comparison
Dec 31, 2023