Harley-Davidson Inc (HOG)
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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 547,887 | 708,683 | 813,905 | 781,738 | 872,330 | 891,418 | 994,980 | 1,043,424 | 954,863 | 940,096 | 796,845 | 791,414 | 837,690 | 717,634 | 693,401 | 300,577 | 61,891 | 199,042 | 142,042 | 516,002 |
| Interest expense (ttm) | US$ in thousands | 30,748 | 30,749 | 30,730 | 30,746 | 30,787 | 30,784 | 31,220 | 31,244 | 31,235 | 31,318 | 30,973 | 30,975 | 30,972 | 31,023 | 31,027 | 31,074 | 31,121 | 31,081 | 31,087 | 31,102 |
| Interest coverage | 17.82 | 23.05 | 26.49 | 25.43 | 28.33 | 28.96 | 31.87 | 33.40 | 30.57 | 30.02 | 25.73 | 25.55 | 27.05 | 23.13 | 22.35 | 9.67 | 1.99 | 6.40 | 4.57 | 16.59 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $547,887K ÷ $30,748K
= 17.82
Harley-Davidson Inc's interest coverage ratio, which measures the company's ability to cover interest expenses with its operating income, has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio has ranged from a low of 1.99 on December 31, 2020, to a high of 33.40 on March 31, 2023.
The interest coverage ratio improved significantly from the low point in December 2020 to peak at 33.40 in March 2023, indicating a strong ability to cover interest payments with operating income during that period. However, the ratio decreased thereafter but remained relatively healthy, staying above 20 for most of the subsequent quarters.
Overall, the trend in interest coverage for Harley-Davidson Inc has shown volatility but generally demonstrates the company's ability to comfortably meet its interest obligations with its operating earnings, which is a positive sign for its financial stability.
Peer comparison
Dec 31, 2024