Dover Corporation (DOV)

Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations on its debt. Looking at Dover Corporation's interest coverage over the past few years, we observe a positive trend from 2020 to 2022. The interest coverage ratio was 8.52 in 2020, indicating that the company generated enough operating income to cover its interest expenses 8.52 times over.

By the end of 2021, Dover Corporation's interest coverage ratio improved significantly to 14.18, reflecting a stronger ability to cover its interest payments with operating income. In 2022, the interest coverage ratio remained healthy at 12.06, suggesting continued financial strength.

However, there was a notable drop in the interest coverage ratio to 10.41 by the end of 2023. While still robust, this decrease indicates a slight reduction in Dover Corporation's ability to cover its interest expenses compared to the previous year.

Interestingly, in 2024, the interest coverage ratio is reported as 0.00, suggesting that the company may have faced challenges in generating sufficient operating income to cover its interest obligations, potentially raising concerns about its financial health.

Overall, it is essential for Dover Corporation to maintain a healthy interest coverage ratio to ensure it can comfortably meet its interest payments and manage its debt obligations effectively. Repeated low or declining interest coverage ratios can indicate financial stress and may warrant further investigation into the company's financial situation and strategies for improving its debt management.

Peer comparison

Dec 31, 2024