Whirlpool Corporation (WHR)
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 | 166,000 | 694,000 | 693,000 | 851,000 | 908,000 | -955,000 | -983,000 | -1,560,000 | -1,064,000 | 911,000 | 1,290,000 | 2,299,000 | 2,476,000 | 2,667,000 | 2,636,000 | 2,012,000 | 1,644,000 | 1,313,000 | 1,445,000 | 1,598,000 |
| Interest expense (ttm) | US$ in thousands | 365,000 | 374,000 | 377,000 | 366,000 | 351,000 | 323,000 | 268,000 | 224,000 | 190,000 | 167,000 | 171,000 | 171,000 | 175,000 | 181,000 | 188,000 | 192,000 | 189,000 | 181,000 | 175,000 | 178,000 |
| Interest coverage | 0.45 | 1.86 | 1.84 | 2.33 | 2.59 | -2.96 | -3.67 | -6.96 | -5.60 | 5.46 | 7.54 | 13.44 | 14.15 | 14.73 | 14.02 | 10.48 | 8.70 | 7.25 | 8.26 | 8.98 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $166,000K ÷ $365,000K
= 0.45
Whirlpool Corporation's interest coverage ratio provides insights into the company's ability to meet its interest payment obligations. The trend analysis of the interest coverage ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the company's ability to cover its interest expenses.
From March 31, 2020, to June 30, 2021, the interest coverage ratio demonstrates an increasing trend, indicating a strengthening ability to cover interest payments. The ratio peaked at 14.73 on September 30, 2021, indicating strong coverage of interest expenses.
However, a decline in the interest coverage ratio is observed in the latter half of 2022 and throughout 2023, with negative values recorded in the third and fourth quarters of 2022 and first two quarters of 2023. These negative values suggest that Whirlpool Corporation's earnings were insufficient to cover its interest expenses during these periods.
The interest coverage ratio starts to improve in 2024, with positive values recorded in each quarter. The ratio remains relatively stable throughout 2024, indicating a positive trend in the company's ability to cover its interest obligations.
Overall, the fluctuating nature of Whirlpool Corporation's interest coverage ratio from 2020 to 2024 highlights varying levels of financial health and the importance of monitoring this ratio to assess the company's ability to manage its debt obligations.
Peer comparison
Dec 31, 2024