Hertz Global Holdings Inc (HTZ)
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 | 347,000 | 965,000 | 1,051,000 | 2,011,000 | 2,502,000 | 2,238,000 | 2,354,000 | 1,071,000 | 807,000 | 576,000 | -447,000 | -1,322,000 | -1,973,000 | -1,742,000 | -1,238,000 | -159,000 | 55,000 | 313,000 | 248,000 | 121,000 |
| Interest expense (ttm) | US$ in thousands | 61,000 | 59,000 | 57,000 | 56,000 | 53,000 | 51,000 | 49,000 | 99,000 | 122,000 | 142,000 | 142,000 | 92,000 | 70,000 | 49,000 | 52,000 | 50,000 | 52,000 | 295,000 | 291,000 | 292,000 |
| Interest coverage | 5.69 | 16.36 | 18.44 | 35.91 | 47.21 | 43.88 | 48.04 | 10.82 | 6.61 | 4.06 | -3.15 | -14.37 | -28.19 | -35.55 | -23.81 | -3.18 | 1.06 | 1.06 | 0.85 | 0.41 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $347,000K ÷ $61,000K
= 5.69
The interest coverage ratio for Hertz Global Holdings Inc. has been fluctuating over the past five quarters. Starting from Q4 2022 at a relatively high level of 6.33, the ratio has shown a downward trend, indicating a decrease in the company's ability to cover its interest expenses with operating income. In Q1 2023, the ratio dropped to 3.85, followed by further declines to 2.58 in Q2 2023 and 1.76 in Q3 2023. The most recent data for Q4 2023 reveals a concerning level of 0.97, which indicates that the company's operating income may not be sufficient to cover its interest expenses. This declining trend in the interest coverage ratio raises potential concerns about Hertz's financial health and ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023