Tootsie Roll Industries Inc (TR)
Interest coverage
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 92,545 | 63,003 | 108,903 | 108,221 | 109,498 | 104,351 | 94,036 | 106,261 | 114,300 | 109,303 | 99,326 | 79,252 | 68,827 | 62,000 | 61,921 | 55,510 | 65,844 | 66,508 | 77,017 | 89,039 |
| Interest expense (ttm) | US$ in thousands | 0 | 13,401 | 13,401 | 13,401 | 26,802 | 18,199 | 19,429 | 30,558 | 22,165 | 17,369 | 16,139 | 5,010 | 2 | 0 | 0 | 0 | 0 | 220 | 440 | 660 |
| Interest coverage | — | 4.70 | 8.13 | 8.08 | 4.09 | 5.73 | 4.84 | 3.48 | 5.16 | 6.29 | 6.15 | 15.82 | 34,413.50 | — | — | — | — | 302.31 | 175.04 | 134.91 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,545K ÷ $0K
= —
Tootsie Roll Industries Inc's interest coverage ratio provides insight into the company's ability to meet interest payments on its debt obligations. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates a stronger ability to cover interest expenses.
From the data provided, the interest coverage ratio fluctuated significantly over the period analyzed. It started at a robust level of 134.91 in March 2020, indicating that the company's earnings were almost 135 times higher than its interest expense during that period. This high ratio suggests a strong financial position.
The ratio increased further to 175.04 in June 2020 and sharply rose to 302.31 in September 2020, indicating an even greater ability to cover interest payments. However, by December 2020, the interest coverage ratio was not reported, which may indicate missing data or a change in financial reporting.
Subsequently, in December 2021, the interest coverage ratio surged dramatically to 34,413.50, which may be due to a significant increase in earnings or a decrease in interest expenses. Such an exceptionally high ratio could be an anomaly or potentially driven by specific events or accounting treatment.
The interest coverage ratio then declined notably to 15.82 in March 2022, 6.15 in June 2022, and further to 3.48 in March 2023. These decreasing ratios suggest a potential deterioration in the company's ability to cover interest payments, raising concerns about its financial health.
There were some fluctuations in the interest coverage ratio in subsequent periods, with values ranging from 4.09 to 8.13. These variations might indicate changes in the company's profitability or interest obligations during those periods.
Overall, a more detailed analysis of Tootsie Roll Industries Inc's financial performance, profitability, and debt structure is necessary to understand the reasons behind the fluctuations in the interest coverage ratio and assess the company's financial stability accurately.
Peer comparison
Dec 31, 2024