TE Connectivity Ltd (TEL)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,828,000 | 2,829,000 | 2,718,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 70,000 | 74,000 | 76,000 | 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 |
| Interest coverage | 40.40 | 38.23 | 35.76 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,828,000K ÷ $70,000K
= 40.40
TE Connectivity Ltd's interest coverage ratio has been consistently strong over the past few years, indicating the company's ability to comfortably meet its interest payment obligations. The trend shows an increasing trend from 2019 to 2020, with the ratio peaking at 50.42 in the fourth quarter of 2021. However, there was a slight decline in the interest coverage ratio in the recent quarters, but it still remains well above the industry average. This indicates that the company's earnings before interest and taxes are more than sufficient to cover its interest expenses, providing a cushion against any potential financial distress. Overall, TE Connectivity Ltd's interest coverage ratio reflects a stable and healthy financial position.
Peer comparison
Sep 30, 2024