Basis: Trailing twelve months (TTM). Source: stored company filings and market data; unavailable inputs remain N/A.
Is the interest coverage ratio high or low?
The interest coverage ratio of 6.40x is in line with its 5-year average of 6.17x, around the middle of its 5-year range (3.34x–8.12x).
8.28% above its 12-month average of 5.91x.
Reported quarterly interest coverage; no daily interpolation. Q2 FY2026 (2026-06-30): 6.21x.
INTEREST COVERAGE RATIO
6.40x
INTEREST COVERAGE RATIO AVG TTM
5.91x
INTEREST COVERAGE RATIO AVG 3Y
6.06x
INTEREST COVERAGE RATIO AVG 5Y
6.17x
INTEREST COVERAGE RATIO AVG 10Y
6.15x
INTEREST COVERAGE RATIO AVG 15Y
6.17x
INTEREST COVERAGE RATIO AVG 20Y
5.72x
CURRENT VS TTM AVG
+8.28%
CURRENT VS 3Y AVG
+5.57%
CURRENT VS 5Y AVG
+3.70%
CURRENT VS 10Y AVG
+4.00%
CURRENT VS 15Y AVG
+3.77%
CURRENT VS 20Y AVG
+11.91%
SECTOR MEDIAN · INDUSTRIALS
7.85x
median of 140 covered companies
CURRENT VS SECTOR MEDIAN
-18.47%
vs the sector median at left
Canadian Pacific Kansas City Ltd.
Market Cap
$76.40B
Interest Coverage Ratio
6.40x
TTM Avg
5.91x
3Y Avg
6.06x
5Y Avg
6.17x
Market Cap
$78.92B
Interest Coverage Ratio
14.44x
TTM Avg
14.75x
3Y Avg
15.84x
5Y Avg
15.76x
Market Cap
$73.15B
Interest Coverage Ratio
7.21x
TTM Avg
7.11x
3Y Avg
8.96x
5Y Avg
8.95x
Market Cap
$79.80B
Interest Coverage Ratio
7.78x
TTM Avg
8.94x
3Y Avg
12.16x
5Y Avg
13.22x
Market Cap
$80.00B
Interest Coverage Ratio
24.52x
TTM Avg
23.93x
3Y Avg
21.15x
5Y Avg
19.43x
Market Cap
$72.53B
Interest Coverage Ratio
6.44x
TTM Avg
6.74x
3Y Avg
6.32x
5Y Avg
7.04x
Market Cap
$72.45B
Interest Coverage Ratio
11.75x
TTM Avg
10.95x
3Y Avg
10.33x
5Y Avg
14.73x
Market Cap
$70.30B
Interest Coverage Ratio
5.06x
TTM Avg
4.86x
3Y Avg
5.11x
5Y Avg
5.44x
Market Cap
$82.67B
Interest Coverage Ratio
5.05x
TTM Avg
6.00x
3Y Avg
7.19x
5Y Avg
7.13x
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Canadian Pacific Kansas City Ltd. (CP) | $76.40B | 6.40x | 5.91x | 6.06x | 6.17x |
| Illinois Tool Works Inc. (ITW)vs › | $78.92B | 14.44x | 14.75x | 15.84x | 15.76x |
| Canadian National Railway Company (CNI)vs › | $73.15B | 7.21x | 7.11x | 8.96x | 8.95x |
| United Parcel Service, Inc. (UPS)vs › | $79.80B | 7.78x | 8.94x | 12.16x | 13.22x |
| Cintas Corporation (CTAS)vs › | $80.00B | 24.52x | 23.93x | 21.15x | 19.43x |
| Northrop Grumman Corporation (NOC)vs › | $72.53B | 6.44x | 6.74x | 6.32x | 7.04x |
| Cummins Inc. (CMI)vs › | $72.45B | 11.75x | 10.95x | 10.33x | 14.73x |
| Norfolk Southern Corporation (NSC)vs › | $70.30B | 5.06x | 4.86x | 5.11x | 5.44x |
| Waste Management, Inc. (WM)vs › | $82.67B | 5.05x | 6.00x | 7.19x | 7.13x |
| Bloom Energy Corporation (BE)vs › | $85.03B | 1.35x | 0.86x | 0.86x | 0.86x |
Interest Coverage
6.4x
Debt/Equity
0.54
Current Ratio
0.59
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
| DATE | INTEREST COVERAGE RATIO |
|---|---|
| 2026-06-30 | 6.21x |
| 2026-03-31 | 5.56x |
| 2025-12-31 | 7.01x |
| 2025-09-30 | 4.31x |
| 2025-06-30 | 6.46x |
| 2025-03-31 | 6.10x |
| 2024-12-31 | 7.68x |
| 2024-09-30 | 6.27x |
| 2024-06-30 | 6.33x |
| 2024-03-31 | 5.58x |
| 2023-12-31 | 7.00x |
| 2023-09-30 | 5.67x |
| 2023-06-30 | 4.63x |
| 2023-03-31 | 5.38x |
| 2022-12-31 | 5.96x |
| 2022-09-30 | 5.64x |
| 2022-06-30 | 5.42x |
| 2022-03-31 | 3.34x |
| 2021-12-31 | 6.66x |
| 2021-09-30 | 7.44x |
| 2021-06-30 | 8.12x |
| 2021-03-31 | 7.09x |
| 2020-12-31 | 8.29x |
| 2020-09-30 | 6.83x |
| 2020-06-30 | 6.53x |
| 2020-03-31 | 7.32x |
| 2019-12-31 | 7.95x |
| 2019-09-30 | 7.90x |
| 2019-06-30 | 7.34x |
| 2019-03-31 | 4.76x |
| 2018-12-31 | 7.67x |
| 2018-09-30 | 7.05x |
| 2018-06-30 | 5.60x |
| 2018-03-31 | 4.70x |
| 2017-12-31 | 5.88x |
| 2017-09-30 | 5.41x |
| 2017-06-30 | 5.01x |
| 2017-03-31 | 5.03x |
| 2016-12-31 | 6.18x |
| 2016-09-30 | 4.22x |
| 2016-06-30 | 4.79x |
| 2016-03-31 | 5.27x |
| 2015-12-31 | 5.55x |
| 2015-09-30 | 7.31x |
| 2015-06-30 | 7.69x |
| 2015-03-31 | 7.20x |
| 2014-12-31 | 9.70x |
| 2014-09-30 | 8.87x |
| 2014-06-30 | 8.51x |
| 2014-03-31 | 6.04x |
| 2013-12-31 | 1.63x |
| 2013-09-30 | 7.49x |
| 2013-06-30 | 6.18x |
| 2013-03-31 | 5.17x |
| 2012-12-31 | 0.87x |
| 2012-09-30 | 5.45x |
| 2012-06-30 | 3.46x |
| 2012-03-31 | 3.97x |
| 2011-12-31 | 4.96x |
| 2011-09-30 | 5.04x |
| 2011-06-30 | 3.70x |
| 2011-03-31 | 1.70x |
| 2010-12-31 | 4.57x |
| 2010-09-30 | 5.57x |
| 2010-06-30 | 4.23x |
| 2010-03-31 | 3.10x |
| 2009-12-31 | 4.23x |
| 2009-09-30 | 6.23x |
| 2009-06-30 | 2.44x |
| 2009-03-31 | 1.80x |
| 2008-12-31 | 4.42x |
| 2008-09-30 | 4.65x |
| 2008-06-30 | 3.99x |
| 2008-03-31 | 3.06x |
| 2007-09-30 | 7.16x |
| 2007-06-30 | 6.25x |
