Trimble Inc (TRMB)
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 | 448,700 | 380,000 | 419,000 | 452,100 | 478,100 | 487,800 | 492,100 | 532,000 | 552,700 | 569,800 | 611,900 | 650,600 | 640,000 | 653,400 | 595,200 | 519,300 | 468,200 | 447,100 | 428,000 | 437,500 |
| Interest expense (ttm) | US$ in thousands | 108,800 | 143,300 | 176,000 | 186,500 | 161,000 | 137,400 | 106,200 | 74,800 | 71,100 | 62,900 | 63,200 | 64,500 | 65,400 | 67,300 | 71,000 | 74,000 | 77,600 | 79,900 | 80,000 | 81,000 |
| Interest coverage | 4.12 | 2.65 | 2.38 | 2.42 | 2.97 | 3.55 | 4.63 | 7.11 | 7.77 | 9.06 | 9.68 | 10.09 | 9.79 | 9.71 | 8.38 | 7.02 | 6.03 | 5.60 | 5.35 | 5.40 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $448,700K ÷ $108,800K
= 4.12
Trimble Inc's interest coverage ratio has shown a generally improving trend over the analyzed period, indicating the company's ability to meet its interest obligations comfortably.
The interest coverage ratio started at 5.40 in March 2020, which means the company generated 5.40 times the earnings to cover its interest expenses. The ratio remained relatively stable around the 5-6 range throughout 2020 and 2021 before showing a significant increase to 7.02 in March 2021. This improvement continued into 2022, reaching a peak of 10.09 in March 2022, reflecting a strong ability to service its interest payments.
However, from June 2022 onwards, the interest coverage ratio started to decline gradually. Despite remaining at a relatively healthy level, experiencing a decrease to 2.38 in June 2024. This decline may indicate a potential strain on the company's ability to cover interest expenses from its operating income.
Overall, while Trimble Inc has shown fluctuations in its interest coverage ratio over the analyzed period, it has generally maintained a satisfactory level of coverage, with some fluctuations in recent periods. It's important for stakeholders to monitor these trends to ensure the company's long-term financial health.
Peer comparison
Dec 31, 2024