Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,266,000 | 1,011,000 | 876,000 | 745,000 | 663,000 |
| Interest expense | US$ in thousands | 218,000 | 186,000 | 177,000 | 198,900 | 219,100 |
| Interest coverage | 5.81 | 5.44 | 4.95 | 3.75 | 3.03 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,266,000K ÷ $218,000K
= 5.81
Westinghouse Air Brake Technologies Corp's interest coverage ratio has shown a consistent improvement over the past five years, indicating the company's ability to meet its interest obligations from its operating income. The trend reveals a positive financial performance, with the interest coverage ratio increasing from 3.06 in 2019 to 5.92 in 2023. This suggests that the company's operating profits are able to cover its interest expenses nearly six times in the most recent year. The steady growth in the interest coverage ratio reflects a strengthening financial position and indicates improved financial health and stability for Westinghouse Air Brake Technologies Corp.
Peer comparison
Dec 31, 2023