Wabash National Corporation (WNC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -356,759 | 311,949 | 167,281 | 24,418 | -85,020 |
| Interest expense | US$ in thousands | 19,839 | 19,854 | 20,525 | 23,128 | 24,194 |
| Interest coverage | -17.98 | 15.71 | 8.15 | 1.06 | -3.51 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-356,759K ÷ $19,839K
= -17.98
The interest coverage ratio for Wabash National Corporation has shown significant volatility over the years. In 2020, the company had a negative interest coverage ratio of -3.51, indicating that its earnings were insufficient to cover its interest expenses.
However, there have been improvements in subsequent years, with the interest coverage ratio increasing to 1.06 in 2021, 8.15 in 2022, and 15.71 in 2023. These improvements suggest that the company's earnings have been able to cover its interest expenses more comfortably, reflecting a positive trend in financial performance.
It is worth noting that in 2024, there was a sharp decline in the interest coverage ratio to -17.98, signaling a potential concern as the company's earnings may not be sufficient to cover its interest expenses. Further analysis and monitoring of Wabash National Corporation's financial performance and debt obligations are recommended to assess the sustainability of its operations.