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.