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 86,454 238,092 104,277 -326,151 57,907
Interest expense US$ in thousands 5,925 6,416 9,047 23,759 11,157
Interest coverage 14.59 37.11 11.53 -13.73 5.19

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $86,454K ÷ $5,925K
= 14.59

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

Company name
Symbol
Interest coverage
Triumph Group Inc
TGI
14.59
AAR Corp
AIR
2.35
Textron Inc
TXT
-26.34