HF Sinclair Corp (DINO)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,222,071 | 3,106,178 | 3,332,648 | 4,275,800 | 3,993,174 |
| Interest expense (ttm) | US$ in thousands | 190,796 | 198,468 | 194,612 | 186,591 | 175,628 |
| Interest coverage | 11.65 | 15.65 | 17.12 | 22.92 | 22.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,222,071K ÷ $190,796K
= 11.65
HF Sinclair Corp.'s interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating the company's improving ability to meet its interest obligations from its operating profits. The Q4 2023 interest coverage ratio of 22.81 indicates that the company generated operating profits over 22 times greater than its interest expenses in that quarter. This suggests a strong financial position and lower risk of default on its debt obligations. Moreover, the company's Q4 2023 interest coverage ratio has shown a slight decrease compared to the previous three quarters, which could be a signal for analysts to monitor the company's financial performance closely to ensure this trend does not continue in the future. Overall, the consistent improvement in HF Sinclair Corp.'s interest coverage ratio is a positive indicator of the company's financial health and ability to manage its debt effectively.