Westinghouse Air Brake Technologies Corp (WAB)
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 | 1,609,000 | 1,583,000 | 1,520,000 | 1,402,000 | 1,266,000 | 1,205,000 | 1,096,000 | 1,048,000 | 1,011,000 | 1,028,000 | 984,000 | 923,000 | 876,000 | 773,600 | 763,300 | 719,700 | 745,000 | 809,500 | 771,900 | 813,100 |
| Interest expense (ttm) | US$ in thousands | 201,000 | 203,000 | 211,000 | 217,000 | 218,000 | 214,000 | 202,000 | 191,000 | 186,000 | 177,000 | 171,200 | 172,100 | 176,700 | 183,300 | 186,700 | 193,200 | 198,900 | 208,600 | 220,700 | 169,304 |
| Interest coverage | 8.00 | 7.80 | 7.20 | 6.46 | 5.81 | 5.63 | 5.43 | 5.49 | 5.44 | 5.81 | 5.75 | 5.36 | 4.96 | 4.22 | 4.09 | 3.73 | 3.75 | 3.88 | 3.50 | 4.80 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,609,000K ÷ $201,000K
= 8.00
The interest coverage ratio of Westinghouse Air Brake Technologies Corp has shown a generally improving trend over the past few years. It started at 4.80 in March 2020 and gradually increased to 8.00 by December 2024. This indicates that the company's ability to cover its interest expenses has strengthened over the period.
A higher interest coverage ratio signifies that Westinghouse Air Brake Technologies Corp has more earnings available to cover its interest obligations, which is a positive indicator of its financial health. The consistent uptrend in this ratio suggests an improving financial position and reduced risk of default on debt payments.
Overall, the increasing trend in the interest coverage ratio of Westinghouse Air Brake Technologies Corp reflects a positive financial performance and indicates that the company has been effectively managing its interest expenses relative to its earnings.
Peer comparison
Dec 31, 2024