Vontier Corp (VNT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 543,400 | 577,900 | 582,200 | 468,200 |
| Interest expense | US$ in thousands | 94,700 | 67,500 | 37,100 | 800 |
| Interest coverage | 5.74 | 8.56 | 15.69 | 585.25 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $543,400K ÷ $94,700K
= 5.74
The interest coverage ratio for Vontier Corporation has been fluctuating over the past five years. In 2023, the interest coverage ratio stands at 5.80, indicating that the company's operating income is able to cover its interest expenses 5.80 times. This represents a decrease from the ratio of 8.30 in 2022 and a significant decline from 12.18 in 2021. In 2020, Vontier exhibited a notably high interest coverage ratio of 55.35, reflecting strong ability to meet interest obligations with operating income. However, it is important to note that data for 2019 is not available, making it difficult to observe the trend over a longer period. Overall, the varying levels of the interest coverage ratio suggest fluctuations in Vontier's ability to service its debt obligations from operating profits in recent years. Further analysis of the company's financial performance and debt management practices may provide additional insights into these fluctuations.
Peer comparison
Dec 31, 2023