Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,609,000 | 1,266,000 | 1,011,000 | 876,000 | 745,000 |
| Interest expense | US$ in thousands | 201,000 | 218,000 | 186,000 | 177,000 | 198,900 |
| Interest coverage | 8.00 | 5.81 | 5.44 | 4.95 | 3.75 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,609,000K ÷ $201,000K
= 8.00
Westinghouse Air Brake Technologies Corp's interest coverage has been showing a positive trend over the past few years. The interest coverage ratio, which measures the company's ability to meet its interest obligations with its operating income, increased from 3.75 in December 2020 to 8.00 in December 2024. This indicates that the company's operating income is more than sufficient to cover its interest expenses, demonstrating a strengthening financial position and a reduced risk of default on its debt obligations. The consistent improvement in the interest coverage ratio suggests that Westinghouse Air Brake Technologies Corp has been effectively managing its debt and generating healthy levels of earnings to support its interest payments.
Peer comparison
Dec 31, 2024