WESCO International Inc (WCC)
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 | 1,315,900 | 1,381,300 | 1,431,070 | 849,985 | 349,433 |
| Interest expense | US$ in thousands | 364,900 | 389,300 | 294,420 | 268,073 | 226,591 |
| Interest coverage | 3.61 | 3.55 | 4.86 | 3.17 | 1.54 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,315,900K ÷ $364,900K
= 3.61
WESCO International Inc's interest coverage has shown an improving trend over the past five years. The interest coverage ratio, which indicates the company's ability to pay interest expenses from its earnings, was 1.54 as of December 31, 2020. Subsequently, the ratio increased to 3.17 in 2021, 4.86 in 2022, 3.55 in 2023, and 3.61 in 2024.
This upward trajectory suggests that the company's earnings are becoming more sufficient to cover its interest obligations, indicating a strengthening financial position and lower risk of default on debt payments. However, the slight dip observed in 2023 compared to the prior year could warrant further monitoring to ensure the company's ability to comfortably cover its interest expenses. Overall, the trend in WESCO's interest coverage ratio reflects positive financial health and a more secure debt repayment capacity.
Peer comparison
Dec 31, 2024