Terex Corporation (TEX)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 496,200 | 573,900 | 627,900 | 645,000 | 644,300 | 642,900 | 597,800 | 492,000 | 415,600 | 376,300 | 329,700 | 330,000 | 318,700 | 279,200 | 225,400 | 128,400 | 57,300 | 43,600 | 82,000 | 197,700 |
| Interest expense (ttm) | US$ in thousands | 88,600 | 59,600 | 63,600 | 63,400 | 63,300 | 60,600 | 57,100 | 53,500 | 49,200 | 46,800 | 45,600 | 46,800 | 51,500 | 56,500 | 60,000 | 63,500 | 65,900 | 68,300 | 74,500 | 82,600 |
| Interest coverage | 5.60 | 9.63 | 9.87 | 10.17 | 10.18 | 10.61 | 10.47 | 9.20 | 8.45 | 8.04 | 7.23 | 7.05 | 6.19 | 4.94 | 3.76 | 2.02 | 0.87 | 0.64 | 1.10 | 2.39 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $496,200K ÷ $88,600K
= 5.60
Terex Corporation's interest coverage ratio has shown significant fluctuations over the past few years. The ratio was at its lowest in September 2020 at 0.64, indicating a lower ability to cover interest expenses with operating income. However, since then, the interest coverage has steadily improved, reaching its peak at 10.61 in September 2023, showing a strong ability to meet interest obligations.
It is worth noting that there was a slight dip in the interest coverage ratio in December 2024, dropping to 5.60. This could signal a potential decrease in the company's ability to cover interest expenses, although the ratio remains above 1, indicating the company's ability to meet its interest obligations from operating income.
Overall, the trend in Terex Corporation's interest coverage ratio demonstrates an improvement in the company's financial health and ability to manage its debt obligations effectively.