Dupont De Nemours Inc (DD)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,558,000	900,000	2,050,000	1,900,000	-1,574,000
Interest expense	US$ in thousands	366,000	396,000	492,000	525,000	767,000
Interest coverage		4.26	2.27	4.17	3.62	-2.05

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,558,000K ÷ $366,000K
= 4.26

The interest coverage ratio for Dupont De Nemours Inc has shown varying trends over the years based on the data provided.

As of December 31, 2020, the interest coverage ratio was -2.05, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses. This raises concerns about the company's ability to meet its interest payment obligations.

However, there was a noticeable improvement in the interest coverage ratio by December 31, 2021, reaching 3.62. This suggests that Dupont De Nemours Inc's earnings were now more than sufficient to cover its interest payments, indicating a healthier financial position compared to the previous year.

By December 31, 2022, the interest coverage ratio further improved to 4.17, indicating a continued strengthening of the company's ability to cover its interest expenses. This is a positive sign as it shows a consistent improvement in the company's financial health.

The interest coverage ratio decreased slightly by December 31, 2023, to 2.27, but still remained above 1, indicating that Dupont De Nemours Inc was able to cover its interest payments from its earnings, albeit not as comfortably as in the previous years.

Finally, as of December 31, 2024, the interest coverage ratio increased to 4.26, suggesting that Dupont De Nemours Inc's earnings were once again comfortably covering its interest expenses, signaling a favorable financial position.

Overall, the trend in Dupont De Nemours Inc's interest coverage ratio reflects an improvement in the company's ability to meet its interest payment obligations over the years, with some fluctuations but generally indicating a strengthening financial position.