Vishay Intertechnology Inc (VSH)
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 | 490,840 | 608,961 | 451,181 | 189,023 | 259,127 |
| Interest expense | US$ in thousands | 25,131 | 17,129 | 17,538 | 31,555 | 33,683 |
| Interest coverage | 19.53 | 35.55 | 25.73 | 5.99 | 7.69 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $490,840K ÷ $25,131K
= 19.53
The interest coverage ratio measures Vishay Intertechnology, Inc.'s ability to meet its interest payment obligations. A higher interest coverage ratio indicates that the company is in a better position to cover its interest expenses.
From the data provided:
- In 2022, the interest coverage ratio was 64.32, reflecting a substantial improvement from the previous year. This significant increase suggests that Vishay Intertechnology had a strong ability to cover its interest payments in 2022.
- In 2021, the interest coverage ratio was 28.75, indicating a solid ability to meet interest obligations, although slightly lower than in 2022.
- In 2020, the interest coverage ratio was 7.56, showing a decrease compared to the prior year. This could raise concerns about the company's ability to comfortably cover its interest expenses in that year.
- In 2019, the interest coverage ratio was 11.35, suggesting a moderate ability to meet interest payments. However, there was a notable increase in this ratio in 2020.
Overall, the trend in Vishay Intertechnology's interest coverage ratio shows fluctuations over the years, with a particularly strong performance in 2022. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023