CNH Industrial N.V. (CNH)
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 | 3,062,000 | 3,376,000 | 3,597,000 | 3,880,000 | 4,012,000 | 4,044,000 | 3,934,000 | 3,688,000 | 3,334,000 | 2,706,000 | 2,338,000 | 2,414,000 | 2,526,000 | 2,660,000 | 1,335,000 | 836,000 | 252,000 | 109,000 | 1,248,000 | 1,512,000 |
| Interest expense (ttm) | US$ in thousands | 1,611,000 | 1,594,000 | 1,562,000 | 1,467,000 | 1,345,000 | 1,192,000 | 1,013,000 | 840,000 | 659,000 | 553,000 | 513,000 | 500,000 | 562,000 | 565,000 | 599,000 | 632,000 | 660,000 | 740,000 | 771,000 | 796,000 |
| Interest coverage | 1.90 | 2.12 | 2.30 | 2.64 | 2.98 | 3.39 | 3.88 | 4.39 | 5.06 | 4.89 | 4.56 | 4.83 | 4.49 | 4.71 | 2.23 | 1.32 | 0.38 | 0.15 | 1.62 | 1.90 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,062,000K ÷ $1,611,000K
= 1.90
The interest coverage ratio of CNH Industrial N.V. has shown variation over the periods from March 31, 2020, to December 31, 2024.
The trend indicates a fluctuation in the company's ability to cover its interest expenses with its operating income. The ratio started at a relatively low level of 1.90 on March 31, 2020, further decreasing to 0.15 on September 30, 2020, indicating a potential strain on the company's ability to meet interest obligations.
However, there was a significant improvement in the ratio in subsequent periods, with values increasing to 4.89 on September 30, 2022, reaching a peak of 5.06 on December 31, 2022. This improvement suggests a strengthening ability to cover interest payments comfortably.
The ratio experienced a decline afterwards, dropping to 2.64 on March 31, 2024, and further to 1.90 on December 31, 2024. This decrease indicates a potential decline in the company's capacity to cover interest expenses efficiently.
Overall, the interest coverage ratio of CNH Industrial N.V. demonstrates variability over the observed periods, with fluctuations that may signal changes in the company's financial health and efficiency in meeting its interest payment obligations.
Peer comparison
Dec 31, 2024