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


See also:

Dupont De Nemours Inc Interest Coverage