DT Midstream Inc (DTM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 638,000 | 607,000 | 523,000 |
| Interest expense | US$ in thousands | 150,000 | 137,000 | 112,000 |
| Interest coverage | 4.25 | 4.43 | 4.67 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $638,000K ÷ $150,000K
= 4.25
DT Midstream Inc's interest coverage ratio has shown a declining trend over the past four years, decreasing from 5.00 in 2020 to 4.32 in 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened slightly. Despite the slight decline, DT Midstream Inc still maintains a comfortable level of interest coverage, with ratios above 4.0 in each year, indicating that the company generates sufficient income to meet its interest payment obligations. However, management should continue to monitor this trend to ensure that the company's financial health is maintained in the long term.
Peer comparison
Dec 31, 2023