Dover Corporation (DOV)
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 | 1,641,368 | 2,001,497 | 1,967,890 | 1,916,054 | 1,401,311 | 1,397,721 | 1,393,692 | 1,422,210 | 1,403,961 | 1,534,537 | 1,505,667 | 1,493,327 | 1,507,145 | 1,268,672 | 1,193,441 | 1,028,976 | 953,671 | 932,897 | 943,516 | 1,039,469 |
| Interest expense (ttm) | US$ in thousands | 131,171 | 133,765 | 132,026 | 133,456 | 131,305 | 133,533 | 130,933 | 124,118 | 116,456 | 109,732 | 106,376 | 106,048 | 106,319 | 108,151 | 109,442 | 111,492 | 111,937 | 114,549 | 118,235 | 121,278 |
| Interest coverage | 12.51 | 14.96 | 14.91 | 14.36 | 10.67 | 10.47 | 10.64 | 11.46 | 12.06 | 13.98 | 14.15 | 14.08 | 14.18 | 11.73 | 10.90 | 9.23 | 8.52 | 8.14 | 7.98 | 8.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,641,368K ÷ $131,171K
= 12.51
The interest coverage ratio of Dover Corporation has shown a generally positive trend over the analyzed periods, indicating the company's ability to meet its interest obligations using its operating income.
From March 31, 2020, to June 30, 2022, the interest coverage ratio consistently increased from 8.57 to 14.15, suggesting a strengthening financial position and better ability to cover interest payments.
However, from September 30, 2022, to December 31, 2024, there was a slight decline in the interest coverage ratio from 13.98 to 12.51. This may indicate a potential decrease in profitability relative to interest expenses but is still considered at a healthy level.
Overall, Dover Corporation has maintained a solid interest coverage ratio above 1, indicating that the company generates sufficient operating income to cover its interest expenses comfortably. It is essential to continue monitoring this ratio to ensure the company's financial health and ability to honor its debt obligations in the future.
Peer comparison
Dec 31, 2024