Dover Corporation (DOV)
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 | 1,401,310 | 1,403,960 | 1,507,140 | 953,671 | 968,827 |
| Interest expense | US$ in thousands | 131,305 | 116,456 | 106,319 | 111,937 | 125,818 |
| Interest coverage | 10.67 | 12.06 | 14.18 | 8.52 | 7.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,401,310K ÷ $131,305K
= 10.67
Dover Corp.'s interest coverage ratio has shown a consistent and healthy trend over the last five years, indicating its ability to meet interest obligations comfortably. The ratio has ranged from 8.42 in 2019 to 12.58 in 2021, with a slight dip to 8.61 in 2020 before rebounding in subsequent years. This demonstrates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses by a large margin, providing a strong indication of its financial stability and lower risk of defaulting on its debt obligations. Overall, the trend in Dover Corp.'s interest coverage ratio suggests a well-managed capital structure and a solid financial position.
Peer comparison
Dec 31, 2023