BorgWarner Inc (BWA)

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	1,276,000	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	1,303,000	1,091,000	1,093,000	1,121,000
Interest expense (ttm)	US$ in thousands	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	16,000	18,700	20,200	21,600
Interest coverage		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	81.44	58.34	54.11	51.90

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,276,000K ÷ $95,000K
= 13.43

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is in a better position to cover its interest expenses.

Based on the data provided for BorgWarner Inc, the interest coverage ratio has shown fluctuations over the past eight quarters. In Q3 2023, the interest coverage ratio was the highest at 121.00, indicating a strong ability to cover interest payments. This was an improvement from the previous quarter, Q2 2023, where the ratio was 37.73.

Overall, the interest coverage ratio has generally been increasing over the quarters, reflecting the company's improving financial health and ability to meet its interest obligations. However, it is important to monitor this ratio over time to ensure that BorgWarner Inc continues to maintain a strong position in meeting its interest payments.