Aptiv PLC (APTV)
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 | 1,295,000 | 934,000 | 841,000 | 2,017,000 | 1,286,000 |
| Interest expense | US$ in thousands | 285,000 | 219,000 | 150,000 | 164,000 | 164,000 |
| Interest coverage | 4.54 | 4.26 | 5.61 | 12.30 | 7.84 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,295,000K ÷ $285,000K
= 4.54
Aptiv PLC's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to comfortably meet its interest obligations from its operating income. The ratio increased from 4.72 in 2020 to 8.45 in 2023, reaching its highest level of 9.53 in 2019. This improvement suggests that the company's earnings are more than sufficient to cover its interest expenses, reflecting strong financial health and profitability. Overall, the consistent upward trend in Aptiv's interest coverage ratio signals a stable financial position and effective management of debt obligations.
Peer comparison
Dec 31, 2023