Waters Corporation (WAT)

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	817,676	873,395	821,707	645,489	708,457
Interest expense	US$ in thousands	98,861	48,797	44,938	49,070	48,690
Interest coverage		8.27	17.90	18.29	13.15	14.55

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $817,676K ÷ $98,861K
= 8.27

Waters Corp.'s interest coverage ratio has exhibited a declining trend over the past five years. In 2023, the interest coverage ratio was 9.94, lower than the previous year's ratio of 23.38. This suggests that Waters Corp. may have experienced a decrease in its ability to cover its interest expenses with its operating profits. Comparing to 2021 and 2020, the interest coverage ratio has also decreased significantly. However, it is worth noting that the company's 2023 ratio of 9.94 still indicates that it is generating sufficient operating income to cover its interest expenses, albeit at a lower level than in previous years. Further investigation into the company's financial health and operational efficiency may be warranted to determine the factors contributing to this downward trend in interest coverage.