Cactus Inc (WHD)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 311,831 | 315,929 | 326,602 | 310,573 | 284,407 | 260,578 | 224,271 | 201,846 | 182,033 | 151,124 | 120,594 | 93,667 | 75,427 | 58,138 | 49,928 | 42,346 | 71,903 | 99,565 | 134,132 | 175,850 |
Interest expense (ttm) | US$ in thousands | 1,405 | 1,587 | 2,959 | 7,482 | 8,484 | 10,672 | 10,440 | 4,816 | 3,914 | 1,686 | 845 | 722 | 774 | 782 | 701 | 743 | 1,001 | 1,241 | 1,396 | 1,266 |
Interest coverage | 221.94 | 199.07 | 110.38 | 41.51 | 33.52 | 24.42 | 21.48 | 41.91 | 46.51 | 89.63 | 142.71 | 129.73 | 97.45 | 74.35 | 71.22 | 56.99 | 71.83 | 80.23 | 96.08 | 138.90 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $311,831K ÷ $1,405K
= 221.94
The interest coverage ratio of Cactus Inc shows a fluctuating trend over the years, indicating the company's ability to meet its interest obligations from its earnings. The ratio was relatively high at the end of March 2020, gradually declined by June 2021, and then increased until the end of June 2022.
However, there was a significant drop in the interest coverage ratio by the end of December 2022, signaling a potential difficulty for the company to cover its interest expenses with its operating income. This downward trend continued until the end of June 2023, reaching its lowest point during this period.
From September 2023 to December 2024, there was a modest recovery in the interest coverage ratio, indicating an improvement in Cactus Inc's ability to pay its interest costs. The ratio significantly increased at the end of December 2024, suggesting a favorable position for the company in meeting its interest payment obligations with its earnings.
Overall, Cactus Inc's interest coverage ratio has shown volatility over the years, reflecting fluctuations in the company's financial health and ability to manage its debt servicing obligations.
Peer comparison
Dec 31, 2024