Trimble Inc (TRMB)
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 | 463,900 | 518,000 | 575,600 | 640,000 | 472,600 |
| Interest expense | US$ in thousands | 90,700 | 161,000 | 71,100 | 65,400 | 77,600 |
| Interest coverage | 5.11 | 3.22 | 8.10 | 9.79 | 6.09 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $463,900K ÷ $90,700K
= 5.11
The interest coverage ratio for Trimble Inc has shown fluctuations over the past five years. In 2020, the interest coverage ratio was 6.09, indicating that the company earned 6.09 times the amount of interest incurred on its debt. This ratio improved significantly to 9.79 in 2021, suggesting a stronger ability to cover interest expenses with operating income.
In 2022, the interest coverage ratio decreased to 8.10, but still indicated a healthy ability to meet interest obligations. However, in 2023, the ratio dropped to 3.22, showing a notable decrease in the company's ability to cover interest costs with its operating profits.
The interest coverage ratio then saw a slight recovery in 2024 to 5.11, indicating a partial improvement in the company's capacity to pay interest expenses. Overall, the trend in interest coverage for Trimble Inc has been somewhat volatile, with fluctuations in the company's ability to service its debt obligations from operating income. It would be advisable for stakeholders to monitor this ratio closely to ensure the company maintains a healthy financial position.
Peer comparison
Dec 31, 2024