Dana Inc (DAN)
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 | 313,000 | 380,000 | 262,000 | 196,000 | 170,000 | 172,000 | 296,000 | 339,000 | 400,000 | 430,000 | 430,000 | 221,000 | 165,000 | 172,000 | 220,000 | 242,000 | 316,000 | 334,000 | 337,000 | 566,000 |
| Interest expense (ttm) | US$ in thousands | 154,000 | 147,000 | 138,000 | 131,000 | 128,000 | 127,000 | 126,000 | 128,000 | 131,000 | 138,000 | 145,000 | 143,000 | 138,000 | 129,000 | 122,000 | 124,000 | 122,000 | 117,000 | 110,000 | 99,000 |
| Interest coverage | 2.03 | 2.59 | 1.90 | 1.50 | 1.33 | 1.35 | 2.35 | 2.65 | 3.05 | 3.12 | 2.97 | 1.55 | 1.20 | 1.33 | 1.80 | 1.95 | 2.59 | 2.85 | 3.06 | 5.72 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $313,000K ÷ $154,000K
= 2.03
Dana Inc's interest coverage ratio has shown fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payment obligations on its outstanding debt. A higher ratio indicates a stronger ability to meet interest payments.
In the most recent quarter, Q4 2023, the interest coverage ratio was 2.75, which suggests that the company generated 2.75 times the amount needed to cover its interest expenses. This indicates a relatively healthy position for Dana Inc in terms of meeting its interest obligations.
Looking back over the past quarters, the interest coverage ratio has fluctuated, with a general upward trend from Q1 2022 to Q3 2023, indicating an improving ability to cover interest payments.
However, the ratio dipped in Q4 2022 and Q1 2023 before picking up again in the subsequent quarters. The fluctuations in the interest coverage ratio could be attributed to changes in the company's operating income and interest expenses over the quarters.
Overall, Dana Inc's interest coverage ratio has shown variations but generally indicates that the company has been able to comfortably cover its interest obligations. Investors and stakeholders should continue to monitor this ratio to ensure Dana Inc's continued financial stability.
Peer comparison
Dec 31, 2023