BorgWarner Inc (BWA)

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 546,000 1,143,000 1,145,000 1,231,000 1,276,000 1,625,000 1,618,000 1,507,000 1,519,000 1,067,000 1,055,000 1,100,000 1,151,000 1,187,000 1,218,000 823,000 618,000 882,000 874,000 1,237,000
Interest expense (ttm) US$ in thousands 99,000 89,000 86,000 90,000 95,000 100,000 97,000 97,000 96,000 91,000 94,000 115,000 117,000 86,000 66,000 25,000 8,000 9,000 12,000 15,000
Interest coverage 5.52 12.84 13.31 13.68 13.43 16.25 16.68 15.54 15.82 11.73 11.22 9.57 9.84 13.80 18.45 32.92 77.25 98.00 72.83 82.47

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $546,000K ÷ $99,000K
= 5.52

The interest coverage ratio for BorgWarner Inc has fluctuated over the periods provided. It started at a healthy level of 82.47 in March 2020, indicating the company's ability to cover interest expenses 82.47 times with its operating income. However, the ratio gradually declined to a low of 5.52 in December 2024, which raises concerns about the company's ability to cover its interest payments. Overall, the decreasing trend in the interest coverage ratio suggests a potential strain on BorgWarner Inc's financial health and ability to service its debt obligations over time.