Autoliv Inc (ALV)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 704,000 | 661,000 | 672,000 | 363,000 | 718,000 |
| Interest expense | US$ in thousands | 93,000 | 60,000 | 60,000 | 73,000 | 70,000 |
| Interest coverage | 7.57 | 11.02 | 11.20 | 4.97 | 10.26 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $704,000K ÷ $93,000K
= 7.57
Autoliv Inc.'s interest coverage has displayed fluctuations over the past five years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income. In this case, Autoliv Inc.'s interest coverage ratio has been relatively healthy, ranging from 6.94 to 12.16, suggesting that the company has been able to comfortably meet its interest obligations with its operating income during these periods. The ratio peaked in 2021 at 12.16, indicating a strong ability to service its debt. However, the ratio decreased in 2020 to 6.94 before rebounding in the subsequent years. Overall, Autoliv Inc.'s interest coverage ratio demonstrates a generally stable and sound financial position with sufficient operating income to cover its interest expenses.
Peer comparison
Dec 31, 2023