Deere & Company (DE)
Interest coverage
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 15,537,000 | 15,490,000 | 14,870,000 | 13,467,000 | 11,793,000 | 10,200,000 | 8,785,000 | 8,353,000 | 8,195,000 | 8,616,000 | 8,158,000 | 7,314,000 | 5,979,000 | 5,079,000 | 4,927,000 | 4,863,000 | 5,439,000 | 5,571,000 | 5,669,000 | 5,665,000 |
| Interest expense (ttm) | US$ in thousands | 2,776,000 | 2,453,000 | 2,020,000 | 1,693,000 | 1,311,000 | 1,061,000 | 922,000 | 870,000 | 951,000 | 993,000 | 1,061,000 | 1,107,000 | 1,181,000 | 1,246,000 | 1,356,000 | 1,440,000 | 1,449,000 | 1,466,000 | 1,401,000 | 1,318,000 |
| Interest coverage | 5.60 | 6.31 | 7.36 | 7.95 | 9.00 | 9.61 | 9.53 | 9.60 | 8.62 | 8.68 | 7.69 | 6.61 | 5.06 | 4.08 | 3.63 | 3.38 | 3.75 | 3.80 | 4.05 | 4.30 |
January 28, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $15,537,000K ÷ $2,776,000K
= 5.60
The interest coverage ratio for Deere & Co. has shown significant fluctuations over the past few quarters. In Q1 2024, the interest coverage ratio was 31.56, indicating that the company's operating income was more than sufficient to cover its interest expenses. This was a decrease from the previous quarter's ratio of 143.08, which was unusually high and may have been influenced by certain one-time or non-recurring factors.
In Q3 2023 and Q2 2023, the interest coverage ratios were 11.48 and 14.11 respectively, which were comparatively lower than the more recent ratios but still above 1, implying that the company was able to meet its interest obligations. The ratios in Q1 2023, Q4 2022, Q3 2022, and Q2 2022 were 21.36, 35.62, 34.14, and 41.47 respectively, showing a generally improving trend over those quarters.
Overall, while the interest coverage ratio has fluctuated significantly, it has generally been at comfortable levels, indicating that Deere & Co. has been able to manage its interest expenses effectively relative to its operating income. It is important for investors and analysts to monitor these fluctuations to understand the company's financial health and its ability to service its debt obligations.
Peer comparison
Jan 28, 2024