Whirlpool Corporation (WHR)
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 | 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 | 1,719,000 | 1,662,000 | 1,215,000 | 386,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 187,000 | 199,000 | 206,000 | 201,000 |
| Interest coverage | 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 | 9.19 | 8.35 | 5.90 | 1.92 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $908,000K ÷ $351,000K
= 2.59
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. In the case of Whirlpool Corp., its interest coverage ratio has been fluctuating over the past eight quarters.
From Q1 2022 to Q2 2023, Whirlpool Corp.'s interest coverage ratio ranged from a high of 12.26 to a low of 3.05. This indicates that the company's ability to cover its interest expenses with its operating income has varied significantly during this period.
The trend shows a general decline in the interest coverage ratio over the quarters, with the ratio dropping from 12.26 in Q1 2022 to 3.36 in Q2 2023. This downward trend may raise concerns about the company's ability to meet its interest payments in the future, as a lower ratio suggests a higher risk of default.
It is important for investors and stakeholders to closely monitor Whirlpool Corp.'s interest coverage ratio to assess the company's financial health and ability to manage its debt obligations effectively. Further analysis of the company's operational performance and cash flow generation may provide additional insights into its ability to service its debt in the long run.
Peer comparison
Dec 31, 2023