Vishay Intertechnology Inc (VSH)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,864 | 134,269 | 264,483 | 368,495 | 489,794 | 547,201 | 614,858 | 630,212 | 608,817 | 594,430 | 534,296 | 501,136 | 454,596 | 391,778 | 329,538 | 246,127 | 199,952 | 181,681 | 178,592 | 216,058 |
| Interest expense (ttm) | US$ in thousands | 27,480 | 26,203 | 26,760 | 26,507 | 25,131 | 23,167 | 20,124 | 18,027 | 17,129 | 16,931 | 17,248 | 17,384 | 17,538 | 20,405 | 23,392 | 27,379 | 31,555 | 32,919 | 34,069 | 33,843 |
| Interest coverage | 0.29 | 5.12 | 9.88 | 13.90 | 19.49 | 23.62 | 30.55 | 34.96 | 35.54 | 35.11 | 30.98 | 28.83 | 25.92 | 19.20 | 14.09 | 8.99 | 6.34 | 5.52 | 5.24 | 6.38 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,864K ÷ $27,480K
= 0.29
The interest coverage ratio measures Vishay Intertechnology Inc's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a company's stronger ability to cover its interest expenses using its operating income.
Looking at the data provided:
- The interest coverage ratio for Vishay Intertechnology Inc has generally been on an upward trend from March 31, 2020, to March 31, 2024.
- The ratio increased from 6.38 on March 31, 2020, to a peak of 35.54 on December 31, 2022, before starting to decline.
- As of December 31, 2024, the interest coverage ratio dropped significantly to 0.29, which indicates a potential concern regarding the company's ability to cover its interest payments with its current level of operating income.
- This decline in the interest coverage ratio over the period from December 31, 2022, to December 31, 2024, may raise questions about Vishay Intertechnology Inc's financial health and its ability to manage its debt obligations effectively.
- Investors and creditors should closely monitor Vishay Intertechnology Inc's interest coverage ratio to assess its financial health and sustainability in meeting its interest obligations in the future.
Peer comparison
Dec 31, 2024