Westinghouse Air Brake Technologies Corp (WAB)
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 | 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 | 663,100 | 530,400 | 486,500 | 409,400 |
| Interest expense (ttm) | US$ in thousands | 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 | 116,008 | 94,026 | 60,039 | 91,955 |
| Interest coverage | 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 | 5.72 | 5.64 | 8.10 | 4.45 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,266,000K ÷ $218,000K
= 5.81
Westinghouse Air Brake Technologies Corp's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 5.47 to 5.98. This ratio depicts the company's ability to meet interest obligations with its earnings before interest and taxes (EBIT).
The consistent range of values around the 5.5 to 6 mark indicates that the company has maintained a strong ability to cover its interest expenses comfortably. A higher interest coverage ratio suggests that Westinghouse Air Brake Technologies Corp is less vulnerable to financial distress due to an inability to meet interest payments.
Overall, the trend in the interest coverage ratio demonstrates the company's consistent financial health and its ability to generate sufficient earnings to cover interest expenses across multiple quarters.
Peer comparison
Dec 31, 2023