Vishay Intertechnology Inc (VSH)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 490,840 | 536,501 | 617,999 | 630,325 | 608,961 | 594,526 | 530,369 | 499,981 | 451,181 | 386,952 | 319,333 | 235,827 | 189,023 | 155,026 | 154,584 | 195,490 | 259,127 | 349,479 | 434,386 | 461,318 |
| Interest expense (ttm) | US$ in thousands | 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 | 33,683 | 34,978 | 37,227 | 37,395 |
| Interest coverage | 19.53 | 23.16 | 30.71 | 34.97 | 35.55 | 35.11 | 30.75 | 28.76 | 25.73 | 18.96 | 13.65 | 8.61 | 5.99 | 4.71 | 4.54 | 5.78 | 7.69 | 9.99 | 11.67 | 12.34 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $490,840K ÷ $25,131K
= 19.53
Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. In the case of Vishay Intertechnology, Inc., the interest coverage ratio has been improving over the quarters, as evidenced by the increasing trend from Q1 2022 to Q2 2023.
The interest coverage ratio for Q4 2023 and Q3 2023 is not available, denoted by "—". In Q2 2023, the interest coverage ratio was strong at 364.48, indicating that the company generated 364 times more operating income than it needed to cover its interest expenses for that period. This significant improvement from the previous quarters reflects Vishay Intertechnology's enhanced ability to meet its interest payment obligations.
Furthermore, the interest coverage ratios in Q1 2023, Q4 2022, and Q3 2022 were 123.49, 64.32, and 44.97, respectively, all showing an upward trajectory compared to the previous year. This suggests that the company's profitability and operating performance have been strengthening over time, enabling it to better service its debt.
Overall, based on the trend of increasing interest coverage ratios, Vishay Intertechnology, Inc. appears to be effectively managing its interest expenses and demonstrating financial stability in meeting its debt obligations. However, a closer examination of the company's overall debt levels and future interest rate environment would provide a more comprehensive assessment of its financial health and ability to sustain this positive trend.
Peer comparison
Dec 31, 2023