Triumph Group Inc (TGI)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 95,677 | 116,998 | 98,026 | -276,632 | 223,241 |
| Interest expense | US$ in thousands | 123,021 | 137,714 | 135,861 | 171,397 | 122,129 |
| Interest coverage | 0.78 | 0.85 | 0.72 | -1.61 | 1.83 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $95,677K ÷ $123,021K
= 0.78
The interest coverage ratio for Triumph Group Inc has fluctuated over the past five years. It stood at 14.59 in 2024, indicating that the company generated operating earnings of approximately 14.59 times the interest expense for that year. The high interest coverage ratio in 2023, at 37.11, suggests a strong ability to cover interest payments with operating earnings. However, in 2022, the ratio dropped to 11.53, which still indicates a reasonable ability to meet interest obligations. The negative interest coverage ratio in 2021 at -13.73 is concerning as it implies that operating earnings were insufficient to cover interest expenses during that period. In 2020, the ratio improved to 5.19, showing a better ability to cover interest payments compared to the previous year. Overall, the interest coverage ratio for Triumph Group Inc has shown variability, indicating the company's changing ability to service its interest obligations with operating earnings over the years.
Peer comparison
Mar 31, 2024