DT Midstream Inc (DTM)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	657,000	667,000	673,000	660,000	650,000	646,000	639,000	640,000	619,000	621,000	600,000	556,000	549,000	386,000	422,000	431,000	425,000
Interest expense (ttm)	US$ in thousands	153,000	156,000	156,000	152,000	150,000	149,000	146,000	144,000	137,000	130,000	126,000	117,000	112,000	112,000	110,000	112,000	113,000
Interest coverage		4.29	4.28	4.31	4.34	4.33	4.34	4.38	4.44	4.52	4.78	4.76	4.75	4.90	3.45	3.84	3.85	3.76

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $657,000K ÷ $153,000K
= 4.29

The interest coverage ratio for DT Midstream Inc has shown a generally stable trend over the period from December 31, 2020, to December 31, 2024. The ratio has ranged from a low of 3.45 on September 30, 2021, to a high of 4.90 on December 31, 2021. This indicates the company's ability to meet its interest obligations from its earnings before interest and taxes.

Overall, the interest coverage ratio has remained above 3.0, which is considered the minimum acceptable level for most investors and lenders. A ratio above 3.0 suggests that the company is generating sufficient operating income to comfortably cover its interest expenses.

The slight fluctuations in the interest coverage ratio over the period may be attributed to changes in the company's operating performance or interest expenses. It is important for stakeholders to monitor this ratio to ensure that the company maintains its ability to meet its interest obligations from its operating earnings.