Vishay Intertechnology Inc (VSH)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 25,091 | 486,144 | 610,634 | 452,148 | 199,952 |
| Interest expense | US$ in thousands | 27,480 | 25,131 | 17,129 | 17,538 | 31,555 |
| Interest coverage | 0.91 | 19.34 | 35.65 | 25.78 | 6.34 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $25,091K ÷ $27,480K
= 0.91
The interest coverage ratio for Vishay Intertechnology Inc has displayed fluctuations over the past five years. In December 31, 2020, the interest coverage ratio stood at 6.34, indicating that the company's operating income was sufficient to cover its interest expenses over six times. Subsequently, in December 31, 2021, the ratio significantly improved to 25.78, reflecting a substantial increase in the ability of the company to meet its interest obligations.
By December 31, 2022, the interest coverage ratio further increased to 35.65, suggesting a more robust financial position with a notable ability to service interest payments. However, in December 31, 2023, the ratio declined to 19.34, although still at a healthy level, indicating the operating income could cover the interest expense nearly 19 times.
Lastly, in December 31, 2024, there was a significant decline in the interest coverage ratio to 0.91. This decrease raises concerns as the operating income may barely cover the interest expenses, potentially indicating financial distress. Overall, while there have been fluctuations in the interest coverage ratio for Vishay Intertechnology Inc, the company should closely monitor its financial position and ensure it maintains a healthy ratio to meet its interest obligations comfortably.
Peer comparison
Dec 31, 2024