Werner Enterprises Inc (WERN)

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	181,408	228,013	264,430	314,209	332,290	347,952	358,459	357,907	348,012	328,102	304,150	259,988	228,909	213,473	205,168	211,369	228,760	237,862	247,787	239,812
Interest expense (ttm)	US$ in thousands	33,535	30,540	24,657	18,305	11,828	7,604	6,110	5,024	4,423	3,399	3,002	3,462	4,215	5,798	7,319	7,587	6,854	5,548	4,010	3,071
Interest coverage		5.41	7.47	10.72	17.17	28.09	45.76	58.67	71.24	78.68	96.53	101.32	75.10	54.31	36.82	28.03	27.86	33.38	42.87	61.79	78.09

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $181,408K ÷ $33,535K
= 5.41

Interest coverage measures a company's ability to meet its interest payments on outstanding debt. Higher interest coverage ratios indicate a stronger ability to cover interest expenses.

Looking at Werner Enterprises, Inc.'s interest coverage ratio over the past eight quarters, we observe a consistent trend of improvement. The ratio has been increasing steadily from Q1 2022 to Q4 2023, showing a positive trajectory in the company's ability to cover its interest obligations.

The interest coverage ratio has seen a significant increase from 6.57 in Q4 2022 to 84.16 in Q1 2022, indicating a substantial improvement in the company's financial health. This trend suggests that Werner Enterprises, Inc. has been generating sufficient operating income to comfortably meet its interest expenses.

Overall, Werner Enterprises, Inc.'s interest coverage ratio shows a strong and consistent performance, reflecting a solid financial position and the company's ability to manage its debt effectively.