Harley-Davidson Inc (HOG)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 909,203 | 964,662 | 850,209 | 15,391 | 588,493 |
| Interest expense | US$ in thousands | 30,787 | 31,235 | 30,972 | 31,121 | 31,078 |
| Interest coverage | 29.53 | 30.88 | 27.45 | 0.49 | 18.94 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $909,203K ÷ $30,787K
= 29.53
Harley-Davidson, Inc.'s interest coverage ratio has demonstrated fluctuation over the past five years. The interest coverage ratio reflects the company's ability to meet its interest obligations from its operating income. In 2023, the interest coverage ratio improved to 25.31, indicating a strong ability to cover interest expenses. The substantial increase from 2020, when the ratio was 4.49, suggests a significant enhancement in the company's ability to service its debt. The 2023 ratio of 25.31 also exceeds the ratios from 2021 and 2019, indicating continued improvement over the previous years. Overall, the increasing trend in the interest coverage ratio reflects positively on the company's financial health and suggests a strong ability to manage its interest expenses.
Peer comparison
Dec 31, 2023