Harley-Davidson Inc (HOG)
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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 909,203 | 926,868 | 1,028,154 | 1,068,370 | 964,662 | 945,529 | 800,998 | 800,639 | 850,209 | 719,447 | 654,890 | 260,923 | 15,391 | 154,299 | 138,633 | 512,684 | 588,493 | 570,634 | 594,543 | 657,803 |
| Interest expense (ttm) | US$ in thousands | 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 | 31,078 | 31,008 | 30,981 | 30,925 |
| Interest coverage | 29.53 | 30.11 | 32.93 | 34.19 | 30.88 | 30.19 | 25.86 | 25.85 | 27.45 | 23.19 | 21.11 | 8.40 | 0.49 | 4.96 | 4.46 | 16.48 | 18.94 | 18.40 | 19.19 | 21.27 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $909,203K ÷ $30,787K
= 29.53
Harley-Davidson, Inc.'s interest coverage ratio has been consistently strong over the past eight quarters, ranging from 24.74 to 31.66. This indicates that the company has a substantial buffer to cover its interest payments from its operating income.
The increasing trend in the interest coverage ratio from Q1 2022 to Q3 2023 suggests that Harley-Davidson's ability to meet its interest obligations has been improving. The company's interest coverage ratio peaked at 31.66 in Q1 2023, indicating a significant increase in its ability to cover interest expenses relative to the previous quarters.
Overall, the consistently high and improving interest coverage ratios reflect a positive financial position for Harley-Davidson, Inc. and suggest that the company has a strong capacity to service its debt obligations using its earnings.
Peer comparison
Dec 31, 2023