Teleflex Incorporated (TFX)

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	517,850	561,109	521,427	512,143	500,406	527,366	635,646	616,132	616,692	555,600	447,023	370,178	423,749	447,966	433,769	502,760	419,658	423,140	387,458	313,210
Interest expense (ttm)	US$ in thousands	85,082	78,343	68,526	62,183	54,264	47,223	45,837	50,589	56,969	63,679	68,342	67,853	66,494	65,048	67,941	73,017	80,270	86,252	93,878	99,769
Interest coverage		6.09	7.16	7.61	8.24	9.22	11.17	13.87	12.18	10.83	8.73	6.54	5.46	6.37	6.89	6.38	6.89	5.23	4.91	4.13	3.14

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $517,850K ÷ $85,082K
= 6.09

Teleflex Incorporated's interest coverage ratio has been declining steadily over the past eight quarters, from a high of 12.19 in Q2 2022 to a low of 7.78 in Q4 2023. This indicates that the company's ability to meet its interest payments from its operating income has weakened over time.

A higher interest coverage ratio is generally preferred as it indicates the company is more capable of servicing its debt obligations. However, the downward trend in Teleflex's interest coverage may raise concerns about its financial health and ability to manage its debt effectively.

It is important for stakeholders to closely monitor Teleflex's interest coverage ratio in the upcoming quarters to assess the impact of this trend and its implications for the company's financial stability.