DT Midstream Inc (DTM)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 657,000 | 650,000 | 619,000 | 534,000 | 553,000 |
| Interest expense | US$ in thousands | 153,000 | 150,000 | 137,000 | 112,000 | 113,000 |
| Interest coverage | 4.29 | 4.33 | 4.52 | 4.77 | 4.89 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $657,000K ÷ $153,000K
= 4.29
The interest coverage ratio for DT Midstream Inc has been relatively stable over the past five years, ranging from 4.29 to 4.89. This indicates that the company's ability to meet its interest payments on outstanding debt remains strong. A higher interest coverage ratio suggests that the company is more capable of servicing its debt obligations from its operating income. However, it is important to monitor any downward trend in the interest coverage ratio as it could signal potential financial strain in the future. Overall, DT Midstream Inc's consistent interest coverage ratio reflects a sound financial position in terms of managing its debt obligations.
Peer comparison
Dec 31, 2024