Travel + Leisure Co (TNL)

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	742,000	719,000	717,000	705,000	682,000	708,000	685,000	656,000	623,000	512,000	396,000	139,000	-86,000	105,000	255,000	570,000	859,000	752,000	767,000	1,021,000
Interest expense (ttm)	US$ in thousands	251,000	235,000	219,000	205,000	194,000	193,000	192,000	192,000	198,000	201,000	206,000	205,000	193,000	179,000	167,000	161,000	161,000	162,000	159,000	165,000
Interest coverage		2.96	3.06	3.27	3.44	3.52	3.67	3.57	3.42	3.15	2.55	1.92	0.68	-0.45	0.59	1.53	3.54	5.34	4.64	4.82	6.19

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $742,000K ÷ $251,000K
= 2.96

Travel+Leisure Co has consistently maintained a healthy interest coverage ratio over the past eight quarters, ranging from 3.14 to 3.69. This indicates that the company is comfortably able to meet its interest obligations with its operating income. The trend shows a relatively stable and strong ability to cover interest expenses, reflecting the company's financial stability and capacity to manage its debt effectively. Overall, the consistent interest coverage ratios suggest that Travel+Leisure Co has a strong financial position and is well-equipped to handle its interest payments.