Trimble Inc (TRMB)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 448,800 | 448,600 | 449,700 | 491,000 | 510,900 | 542,000 | 567,100 | 577,000 | 561,000 | 555,100 | 509,600 | 462,400 | 419,800 | 386,100 | 375,800 | 387,900 | 375,900 | 377,300 | 363,000 | 342,800 |
| Interest expense (ttm) | US$ in thousands | 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 | 82,400 | 84,600 | 87,600 | 85,600 |
| Interest coverage | 2.79 | 3.26 | 4.23 | 6.56 | 7.19 | 8.62 | 8.97 | 8.95 | 8.58 | 8.25 | 7.18 | 6.25 | 5.41 | 4.83 | 4.70 | 4.79 | 4.56 | 4.46 | 4.14 | 4.00 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $448,800K ÷ $161,000K
= 2.79
Based on the provided data, Trimble Inc's interest coverage ratio has displayed some fluctuations over the past few quarters. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt with its operating income.
The trend in Trimble Inc's interest coverage ratio shows that it has generally been above 4 in recent quarters, indicating that the company has been generating sufficient operating income to cover its interest expenses. The highest interest coverage ratio of 8.97 was recorded in the second quarter of 2022, suggesting a strong ability to meet interest obligations.
It is noteworthy that the interest coverage ratio saw a significant decline in the first quarter of 2021 but has since been on an upward trajectory, reaching a peak of 6.56 in the first quarter of 2023. This improvement indicates that Trimble Inc's ability to cover interest expenses has strengthened over time.
Overall, the interest coverage ratio data from the provided table suggests that Trimble Inc has been effectively managing its interest obligations and generating adequate operating income to support its debt servicing requirements in the majority of the observed quarters.
Peer comparison
Dec 31, 2023