Triumph Group Inc (TGI)

Interest coverage

Mar 31, 2025 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 85,172 123,075 105,598 110,968 117,043 132,968 156,731 261,130 262,913 230,128 226,453 112,624 98,026 43,015 -20,184 -27,235 -278,160 -299,880 -199,977 -152,921
Interest expense (ttm) US$ in thousands 61,543 90,210 101,939 115,954 135,417 143,738 147,680 144,249 137,714 131,527 127,485 129,215 135,861 144,113 156,675 174,998 171,397 158,404 146,701 129,595
Interest coverage 1.38 1.36 1.04 0.96 0.86 0.93 1.06 1.81 1.91 1.75 1.78 0.87 0.72 0.30 -0.13 -0.16 -1.62 -1.89 -1.36 -1.18

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $85,172K ÷ $61,543K
= 1.38

The interest coverage ratio for Triumph Group Inc shows a fluctuating trend over the past few years. The ratio was negative in the earlier periods, indicating that the company's operating income was insufficient to cover its interest expenses. However, starting from December 31, 2021, the interest coverage turned positive and has been gradually improving since then.

As of March 31, 2025, Triumph Group Inc's interest coverage ratio stands at 1.38, suggesting that the company's operating income can cover its interest expenses approximately 1.38 times. This indicates a better financial health compared to the negative interest coverage ratios observed in the past.

It is important for investors and stakeholders to monitor the interest coverage ratio continuously to assess the company's ability to meet its interest obligations and manage its debt effectively. A consistently improving interest coverage ratio reflects a positive trend in the company's financial performance and ability to handle its debt burden.


Peer comparison

Mar 31, 2025

Company name
Symbol
Interest coverage
Triumph Group Inc
TGI
1.38
AAR Corp
AIR
2.35
Textron Inc
TXT
-31.49