Autoliv Inc (ALV)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	986,000	882,000	882,000	777,000	705,000	694,000	639,000	661,000	666,000	605,000	537,000	574,000	674,000	799,600	897,800	499,000	393,200	322,200	274,500	673,600
Interest expense (ttm)	US$ in thousands	108,000	106,000	103,000	100,000	93,000	87,000	78,000	66,000	60,000	55,000	54,000	57,000	60,000	65,700	72,900	72,700	73,000	70,200	66,100	67,800
Interest coverage		9.13	8.32	8.56	7.77	7.58	7.98	8.19	10.02	11.10	11.00	9.94	10.07	11.23	12.17	12.32	6.86	5.39	4.59	4.15	9.94

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $986,000K ÷ $108,000K
= 9.13

Autoliv Inc's interest coverage ratio fluctuated over the reported periods, starting at 9.94 in March 2020 and falling to 4.15 in June 2020, indicating a decrease in the company's ability to cover interest expenses. From June 2020 to June 2021, the interest coverage ratio improved significantly, reaching 12.32, suggesting a healthier financial position and increased ability to meet interest obligations.

Subsequently, the interest coverage ratio remained relatively stable between June 2021 and December 2024, ranging from 7.58 to 9.13. Although the ratio dipped below 8 at some points, it generally stayed within a reasonable range, indicating the company's ability to comfortably cover interest expenses with its earnings.

Overall, despite some fluctuations, Autoliv Inc's interest coverage ratio reflects a generally adequate ability to meet its interest payments, with improvements seen over certain periods in the data.