Trimble Inc (TRMB)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 448,800 | 510,900 | 561,000 | 419,800 | 375,900 |
| Interest expense | US$ in thousands | 161,000 | 71,100 | 65,400 | 77,600 | 82,400 |
| Interest coverage | 2.79 | 7.19 | 8.58 | 5.41 | 4.56 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $448,800K ÷ $161,000K
= 2.79
Interest coverage measures a company's ability to cover its interest expenses with its operating income.
Based on the data provided for Trimble Inc over the last five years, the interest coverage ratio has fluctuated. In 2023, the interest coverage ratio was 2.79, lower than the ratios in the previous two years but higher than 2020 and 2019. This indicates that Trimble Inc may have had a lower ability to cover its interest expenses with operating income in 2023 compared to the previous years.
In 2022, the interest coverage ratio was 7.19, showing a strong ability to cover interest expenses with operating income. This was an improvement from 2021 when the ratio was 8.58. Similarly, in 2020 and 2019, the interest coverage ratios were 5.41 and 4.56, respectively, indicating a moderate ability to cover interest expenses in those years.
Overall, while the interest coverage ratio for Trimble Inc has shown some variability over the past five years, it is important to consider factors such as industry benchmarks, company strategy, and economic conditions when interpreting these fluctuations.
Peer comparison
Dec 31, 2023