Dupont De Nemours Inc (DD)
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 | 1,558,000 | 1,019,000 | 804,000 | 763,000 | 795,000 | 1,771,000 | 1,911,000 | 1,983,000 | 2,050,000 | 2,074,000 | 2,149,000 | 2,488,000 | 2,721,000 | 2,586,000 | 2,130,000 | -782,000 | -1,884,000 | -1,109,000 | -527,000 | 1,013,000 |
| Interest expense (ttm) | US$ in thousands | 366,000 | 383,000 | 424,000 | 423,000 | 422,000 | 443,000 | 443,000 | 467,000 | 492,000 | 505,000 | 492,000 | 499,000 | 525,000 | 584,000 | 666,000 | 730,000 | 767,000 | 748,000 | 728,000 | 700,000 |
| Interest coverage | 4.26 | 2.66 | 1.90 | 1.80 | 1.88 | 4.00 | 4.31 | 4.25 | 4.17 | 4.11 | 4.37 | 4.99 | 5.18 | 4.43 | 3.20 | -1.07 | -2.46 | -1.48 | -0.72 | 1.45 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,558,000K ÷ $366,000K
= 4.26
Dupont De Nemours Inc's interest coverage ratio has shown fluctuation over the past few years. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses.
Based on the data provided:
- The interest coverage ratio was low and below 1 for most of 2020 and early 2021, indicating a potential risk in meeting interest payments from operating earnings during that period.
- However, starting from mid-2021, the interest coverage ratio improved significantly, surpassing 3 and reaching as high as 5 by the end of 2021 and into 2022.
- Despite some fluctuations, the interest coverage ratio remained above 4 for most of 2022 and 2023, demonstrating a strong ability to cover interest expenses with operating earnings.
- By the end of 2023, the interest coverage ratio dropped to below 2, indicating some decrease in the ability to cover interest obligations with earnings.
- The ratios improved again in 2024, with the interest coverage ratio consistently above 2. This suggests a recovery in the company's ability to meet interest payments with operating earnings.
Overall, Dupont De Nemours Inc's interest coverage ratio has shown variability, with periods of both weakness and strength. The company should continue monitoring its interest coverage ratio to ensure it maintains a healthy level of earnings relative to interest expenses.
Peer comparison
Dec 31, 2024