Veralto Corporation (VLTO)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,194,000 | 1,172,000 | 1,137,000 |
| Interest expense (ttm) | US$ in thousands | 113,000 | 110,000 | 88,000 |
| Interest coverage | 10.57 | 10.65 | 12.92 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,194,000K ÷ $113,000K
= 10.57
The interest coverage ratio of Veralto Corporation, a measure of the company's ability to meet its interest payments on outstanding debt, has been relatively stable over the three reported quarters. The interest coverage ratio for June 30, 2024 was 12.92, indicating that the company earned 12.92 times the amount needed to cover its interest expenses. In subsequent quarters, the interest coverage ratio decreased slightly to 10.65 as of September 30, 2024, and further to 10.57 as of December 31, 2024.
While the downward trend in the interest coverage ratio could signal a potential risk as the company's ability to cover interest expenses has weakened marginally, it is essential to note that the ratios are still above 1, indicating that Veralto Corporation is generating sufficient earnings to cover its interest obligations. It would be beneficial for stakeholders to monitor this ratio closely to ensure that the company's profitability remains robust enough to meet its debt obligations comfortably.
Peer comparison
Dec 31, 2024