TTM Technologies Inc (TTMI)
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 | 48,421 | 228,380 | 115,528 | 220,800 | 125,793 |
| Interest expense | US$ in thousands | 48,124 | 45,517 | 45,475 | 73,156 | 82,087 |
| Interest coverage | 1.01 | 5.02 | 2.54 | 3.02 | 1.53 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $48,421K ÷ $48,124K
= 1.01
TTM Technologies Inc's interest coverage ratio has fluctuated over the past five years. In 2023, the company's interest coverage ratio was 1.01, indicating that its operating income barely covered its interest expenses. This may raise concerns about the company's ability to meet its interest obligations. In comparison, the interest coverage ratio was healthier in 2022 at 5.02, suggesting a more comfortable position in terms of covering interest expenses.
The interest coverage ratio decreased significantly from 2022 to 2023, which could indicate a decline in the company's profitability or an increase in interest expenses. The trend from 2020 to 2022 and from 2019 to 2020 shows some improvement in the company's ability to cover interest obligations. However, the ratio in 2021 was lower than in 2020, which might raise some red flags regarding the company's financial health in that particular year.
Overall, fluctuations in TTM Technologies Inc's interest coverage ratio highlight the importance of monitoring the company's ability to make interest payments and the potential impact on its financial stability and leverage.
Peer comparison
Dec 31, 2023