CNH Industrial N.V. (CNH)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,655,000 | 3,980,000 | 4,255,000 | 4,310,000 | 4,231,000 | 4,085,000 | 3,802,000 | 3,505,000 | 2,935,000 | 2,526,000 | 2,567,000 | 2,614,000 | 2,660,000 | 1,335,000 | 836,000 | 252,000 | 109,000 | 1,248,000 | 1,512,000 | 1,949,000 |
| Interest expense (ttm) | US$ in thousands | 1,594,000 | 1,562,000 | 1,467,000 | 1,345,000 | 1,185,000 | 1,029,000 | 868,000 | 734,000 | 622,000 | 559,000 | 534,000 | 549,000 | 565,000 | 599,000 | 632,000 | 660,000 | 740,000 | 771,000 | 796,000 | 798,000 |
| Interest coverage | 2.29 | 2.55 | 2.90 | 3.20 | 3.57 | 3.97 | 4.38 | 4.78 | 4.72 | 4.52 | 4.81 | 4.76 | 4.71 | 2.23 | 1.32 | 0.38 | 0.15 | 1.62 | 1.90 | 2.44 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,655,000K ÷ $1,594,000K
= 2.29
The interest coverage ratio for CNH Industrial N.V. has fluctuated over the periods provided. Generally, a higher interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
Looking at the trend, the interest coverage ratio shows an improvement from December 2019 to March 2024, peaking at 4.78 in December 2022. This demonstrates the company's strong ability to cover its interest expenses with its operating income during this period.
However, there was a significant decline in the interest coverage ratio in the following quarters, with a low of 0.15 in December 2020, indicating a potential strain on CNH Industrial N.V.'s ability to cover its interest payments with its operating earnings.
It is essential for investors and stakeholders to monitor the interest coverage ratio closely to assess the company's financial health and ability to service its debt obligations. Variations in the interest coverage ratio could be indicative of changes in the company's financial performance and risk levels.
Peer comparison
Sep 30, 2024