Adient PLC (ADNT)
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 | 408,000 | 371,000 | 423,000 | 300,000 | 228,000 | 173,000 | 1,192,000 | 1,159,000 | 1,330,000 | 1,586,000 | 411,000 | 153,000 | 38,000 | -287,000 | -284,000 | 56,000 | -36,000 | 57,000 | -1,002,000 | -1,000,000 |
| Interest expense (ttm) | US$ in thousands | 206,000 | 166,000 | 195,000 | 183,000 | 178,000 | 199,000 | 173,000 | 191,000 | 208,000 | 229,000 | 227,000 | 228,000 | 213,000 | 203,000 | 158,000 | 161,000 | 151,000 | 138,000 | 172,000 | 150,000 |
| Interest coverage | 1.98 | 2.23 | 2.17 | 1.64 | 1.28 | 0.87 | 6.89 | 6.07 | 6.39 | 6.93 | 1.81 | 0.67 | 0.18 | -1.41 | -1.80 | 0.35 | -0.24 | 0.41 | -5.83 | -6.67 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $408,000K ÷ $206,000K
= 1.98
The interest coverage ratio of Adient plc has displayed some fluctuations over the past eight quarters. In Q1 2024, the interest coverage ratio stood at 3.40, showing a slight decrease from the previous quarter's ratio of 3.43 in Q4 2023. Prior to this, there was a decrease in Q4 2023 from the ratio of 3.50 in Q3 2023.
The interest coverage ratio reached its lowest point in Q1 2023 with a ratio of 2.49, indicating a potential challenge in meeting interest payment obligations. However, there was an improvement in Q2 2023 and Q3 2023 with ratios of 2.83 and 3.50, respectively.
Notably, there was a significant spike in the interest coverage ratio in Q3 2022 and Q4 2022, reaching high levels of 8.47 and 7.99, respectively. This surge might suggest improved profitability or a reduction in interest expenses during that period.
Overall, the trend in Adient plc's interest coverage ratio demonstrates some variability but generally indicates the company's ability to meet its interest payment obligations, although fluctuations in the ratio over time may warrant further investigation into the company's financial performance and debt management strategies.
Peer comparison
Dec 31, 2023