Harley-Davidson Inc (HOG)
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 | 547,886 | 897,300 | 954,862 | 834,277 | 137,522 |
| Interest expense | US$ in thousands | 30,748 | 30,787 | 31,235 | 30,972 | 31,121 |
| Interest coverage | 17.82 | 29.15 | 30.57 | 26.94 | 4.42 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $547,886K ÷ $30,748K
= 17.82
The interest coverage ratio for Harley-Davidson Inc has shown a positive trend over the past five years, indicating the company's improved ability to meet its interest obligations. Starting at 4.42 in December 2020, the ratio increased significantly to 26.94 in December 2021, and continued to rise to 30.57 in December 2022. Although there was a slight decrease to 29.15 in December 2023, the ratio remained at a healthy level. In December 2024, the interest coverage ratio was 17.82, which is still considered strong. Overall, the upward trend in the interest coverage ratio reflects Harley-Davidson's enhanced capacity to cover its interest expenses with its operating income.
Peer comparison
Dec 31, 2024