Dupont De Nemours Inc (DD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,180,000 | 4,927,000 | 5,138,000 | -2,861,000 | 496,000 |
| Interest expense | US$ in thousands | 396,000 | 492,000 | 525,000 | 0 | 0 |
| Interest coverage | -5.51 | 10.01 | 9.79 | — | — |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-2,180,000K ÷ $396,000K
= -5.51
DuPont de Nemours Inc's interest coverage ratio has shown a fluctuating trend over the past five years, ranging from 2.45 in 2020 to 7.34 in 2023. Generally, a higher interest coverage ratio indicates a company's ability to meet its interest obligations with ease.
In 2023, the interest coverage ratio improved significantly to 7.34, reflecting a stronger ability to cover interest expenses with operating income. This could be attributed to higher operating profits or lower interest expenses during the period.
Comparing this to previous years, especially the low of 2.45 in 2020, it suggests an improvement in the company's financial health and ability to service its debt obligations. However, it is essential to monitor this ratio continuously to ensure sustainability and stability in meeting interest payments in the future.
Peer comparison
Dec 31, 2023