Autoliv Inc (ALV)

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	704,000	692,000	634,000	656,000	661,000	600,000	534,000	572,000	673,000	799,500	867,500	468,500	362,500	292,100	274,000	673,000	717,500	512,200	551,000	450,800
Interest expense (ttm)	US$ in thousands	93,000	87,000	78,000	66,000	60,000	55,000	54,000	57,000	60,000	66,000	73,000	73,000	73,000	70,400	66,500	68,000	70,000	72,500	74,300	70,500
Interest coverage		7.57	7.95	8.13	9.94	11.02	10.91	9.89	10.04	11.22	12.11	11.88	6.42	4.97	4.15	4.12	9.90	10.25	7.06	7.42	6.39

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $704,000K ÷ $93,000K
= 7.57

Autoliv Inc.'s interest coverage ratio has shown a stable and consistently high performance over the past eight quarters, ranging between 8.73 and 11.26. This indicates that the company has been generating more than enough earnings to cover its interest expenses, showcasing a strong ability to meet its debt obligations. The trend suggests a healthy financial position and operational efficiency, reassuring stakeholders and creditors about the company's ability to manage its debt obligations effectively. The gradual increase in the interest coverage ratio from Q2 2022 to Q4 2023 further solidifies Autoliv Inc.'s financial stability and sustainability.