WESCO International Inc (WCC)
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 | 1,406,400 | 1,438,080 | 801,873 | 347,038 | 346,217 |
| Interest expense | US$ in thousands | 389,300 | 294,420 | 268,073 | 226,591 | 64,156 |
| Interest coverage | 3.61 | 4.88 | 2.99 | 1.53 | 5.40 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,406,400K ÷ $389,300K
= 3.61
Based on the interest coverage ratios of Wesco International, Inc. from 2019 to 2023, there appears to be a fluctuating trend in the company's ability to cover its interest expenses.
In 2019, the interest coverage ratio was not available, suggesting insufficient data for that period. However, from 2020 to 2023, the ratios show an increasing trend, indicating an improvement in the company's ability to cover its interest expenses with operating income.
The interest coverage ratio increased from 1.53 in 2020 to 3.61 in 2023, peaking at 4.88 in 2022. This upward trend suggests that Wesco International's operating income has been sufficient to cover its interest expenses in recent years. A higher interest coverage ratio is generally viewed positively as it signifies a lower financial risk for the company, indicating a stronger ability to meet its debt obligations.
Overall, the increasing trend in Wesco International's interest coverage ratios from 2020 to 2023 indicates a positive performance in managing its interest expenses and suggests a strengthening financial position in terms of debt repayment capacity.
Peer comparison
Dec 31, 2023