DT Midstream Inc (DTM)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 638,000 | 634,000 | 627,000 | 628,000 | 607,000 | 592,000 | 571,000 | 527,000 |
| Interest expense (ttm) | US$ in thousands | 150,000 | 149,000 | 146,000 | 144,000 | 137,000 | 130,000 | 126,000 | 117,000 |
| Interest coverage | 4.25 | 4.26 | 4.29 | 4.36 | 4.43 | 4.55 | 4.53 | 4.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $638,000K ÷ $150,000K
= 4.25
The interest coverage ratio for DT Midstream Inc has been relatively stable over the past eight quarters, ranging from 4.32 to 4.78. This indicates that the company's ability to meet its interest obligations with its earnings has remained consistent. A higher interest coverage ratio suggests that the company is more capable of servicing its debt and is at lower risk of default. DT Midstream Inc's interest coverage ratio above 4 signifies that the company is comfortably covering its interest expenses, providing a buffer against potential changes in its operating performance or interest rates. Overall, the consistent and healthy interest coverage ratio reflects DT Midstream Inc's strong financial position and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023