Tootsie Roll Industries Inc (TR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 127,380 | 120,231 | 95,211 | 67,133 | 58,244 |
| Interest expense | US$ in thousands | 509 | 337 | 104 | 46 | 164 |
| Interest coverage | 250.26 | 356.77 | 915.49 | 1,459.41 | 355.15 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $127,380K ÷ $509K
= 250.26
Tootsie Roll Industries Inc's interest coverage ratio reflects the company's ability to meet its interest payment obligations. The interest coverage ratio calculates how many times over a company can cover its interest expenses with its operating income.
For Tootsie Roll Industries Inc, the interest coverage ratio has shown a fluctuating trend over the past five years. The ratio was 355.15 times at December 31, 2020, indicating a strong ability to cover interest payments by operating income. This ratio significantly increased to 1,459.41 times by December 31, 2021, showing a substantial improvement in the company's ability to cover interest expenses.
However, in the following years, the interest coverage ratio decreased. By December 31, 2022, the ratio stood at 915.49 times, still indicating a strong ability to cover interest payments but lower than the previous year. The ratio further decreased to 356.77 times by December 31, 2023, and then to 250.26 times by December 31, 2024.
Overall, Tootsie Roll Industries Inc's interest coverage ratio has shown a strong and fluctuating performance over the past five years, with significant peaks and troughs. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024