Aptiv PLC (APTV)
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 | 1,250,000 | 1,335,000 | 1,361,000 | 1,044,000 | 934,000 | 665,000 | 409,000 | 611,000 | 841,000 | 1,167,000 | 1,340,000 | 775,000 | 2,017,000 | 1,925,000 | 1,916,000 | 2,600,000 | 1,286,000 | 1,311,000 | 1,307,000 | 1,369,000 |
| Interest expense (ttm) | US$ in thousands | 285,000 | 276,000 | 259,000 | 243,000 | 219,000 | 193,000 | 171,000 | 153,000 | 150,000 | 153,000 | 155,000 | 161,000 | 164,000 | 166,000 | 170,000 | 169,000 | 164,000 | 160,000 | 152,000 | 145,000 |
| Interest coverage | 4.39 | 4.84 | 5.25 | 4.30 | 4.26 | 3.45 | 2.39 | 3.99 | 5.61 | 7.63 | 8.65 | 4.81 | 12.30 | 11.60 | 11.27 | 15.38 | 7.84 | 8.19 | 8.60 | 9.44 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,250,000K ÷ $285,000K
= 4.39
Interest coverage measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a better ability to meet interest obligations.
Aptiv PLC's interest coverage ratio has shown a generally improving trend over the past eight quarters. In Q4 2023, the interest coverage ratio was 8.45, indicating that the company could cover its interest expenses approximately 8.45 times with its EBIT. This was slightly lower than the ratio in Q3 2023, which was 9.76, but still at a healthy level.
The highest interest coverage ratio was recorded in Q2 2023 at 10.78, reflecting a strong ability to meet interest obligations using operating profits. Additionally, in the same quarter of the previous year, the ratio was 4.01, indicating significant improvement year over year.
Overall, Aptiv PLC's interest coverage ratio has been relatively stable and well above 1, suggesting that the company has a comfortable buffer to meet its interest payments. This consistent performance indicates a strong financial position and a solid ability to service its debt obligations.
Peer comparison
Dec 31, 2023