United Parcel Service Inc (UPS)
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 | 9,358,000 | 11,737,000 | 13,716,000 | 14,673,000 | 15,529,000 | 15,015,000 | 14,739,000 | 14,474,000 | 17,289,000 | 9,041,000 | 8,572,000 | 7,509,000 | 2,545,000 | 6,626,000 | 6,290,000 | 6,113,000 | 6,305,000 | 7,028,000 | 6,707,000 | 6,419,000 |
| Interest expense (ttm) | US$ in thousands | 785,000 | 760,000 | 738,000 | 718,000 | 704,000 | 695,000 | 695,000 | 691,000 | 694,000 | 696,000 | 695,000 | 711,000 | 701,000 | 692,000 | 675,000 | 651,000 | 653,000 | 635,000 | 631,000 | 621,000 |
| Interest coverage | 11.92 | 15.44 | 18.59 | 20.44 | 22.06 | 21.60 | 21.21 | 20.95 | 24.91 | 12.99 | 12.33 | 10.56 | 3.63 | 9.58 | 9.32 | 9.39 | 9.66 | 11.07 | 10.63 | 10.34 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,358,000K ÷ $785,000K
= 11.92
United Parcel Service, Inc.'s interest coverage ratio has shown a consistent trend of improvement over the quarters provided. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses with its operating income.
In Q4 2023, the interest coverage ratio was 11.64, which was slightly lower compared to the previous quarter. However, the ratio remained at a healthy level, indicating that the company's operating income was sufficient to cover its interest expenses.
The trend of increasing interest coverage ratios from Q1 2022 to Q4 2023 suggests that United Parcel Service, Inc. has been efficiently managing its debt obligations and generating strong operating income. This trend is a positive sign for investors and creditors, as it indicates the company's financial stability and ability to meet its interest payments comfortably.
Overall, the consistent improvement in United Parcel Service, Inc.'s interest coverage ratio reflects a financially healthy and well-managed company with the ability to cover its interest expenses effectively.
See also:
United Parcel Service Inc Interest Coverage (Quarterly Data)