Dana Inc (DAN)
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 | 316,000 | 321,000 | 342,000 | 357,000 | 353,000 | 406,000 | 194,000 | 109,000 | 83,000 | -13,000 | 183,000 | 256,000 | 314,000 | 388,000 | 387,000 | 157,000 | 126,000 | 193,000 | 248,000 | 267,000 |
| Interest expense (ttm) | US$ in thousands | 161,000 | 158,000 | 159,000 | 159,000 | 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 |
| Interest coverage | 1.96 | 2.03 | 2.15 | 2.25 | 2.29 | 2.76 | 1.41 | 0.83 | 0.65 | -0.10 | 1.45 | 2.00 | 2.40 | 2.81 | 2.67 | 1.10 | 0.91 | 1.50 | 2.03 | 2.15 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $316,000K ÷ $161,000K
= 1.96
Dana Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
From March 2020 to December 2021, Dana Inc's interest coverage ratio ranged between 0.91 to 2.81, reflecting some variability in the company's ability to cover its interest obligations. Notably, the ratio improved in the middle of 2021, with values above 2, indicating a healthier ability to meet interest payments.
However, in the later part of 2022, Dana Inc's interest coverage ratio showed a significant decline, dropping to a negative value in September 2022. This negative ratio suggests that the company's EBIT was insufficient to cover its interest expenses during that period, raising concerns about its financial health.
Subsequently, from March 2023 to December 2024, the interest coverage ratio gradually improved, ranging between 1.41 to 2.29. This indicates a recovery in Dana Inc's ability to cover its interest payments with its operating profits.
Overall, while Dana Inc experienced fluctuations in its interest coverage ratio over the period analyzed, it is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial stability and its ability to service its debt obligations.
Peer comparison
Dec 31, 2024