Keurig Dr Pepper Inc (KDP)
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 | 2,591,000 | 3,471,000 | 3,465,000 | 3,373,000 | 3,192,000 | 2,922,000 | 2,420,000 | 2,223,000 | 2,605,000 | 2,657,000 | 3,058,000 | 3,220,000 | 2,894,000 | 2,869,000 | 2,827,000 | 2,654,000 | 2,480,000 | 2,487,000 | 2,305,000 | 2,330,000 |
| Interest expense (ttm) | US$ in thousands | 564,000 | 795,000 | 695,000 | 497,000 | 496,000 | 694,000 | 694,000 | 693,000 | 693,000 | 505,000 | 504,000 | 503,000 | 500,000 | 606,000 | 604,000 | 603,000 | 753,000 | 316,000 | 471,000 | 638,000 |
| Interest coverage | 4.59 | 4.37 | 4.99 | 6.79 | 6.44 | 4.21 | 3.49 | 3.21 | 3.76 | 5.26 | 6.07 | 6.40 | 5.79 | 4.73 | 4.68 | 4.40 | 3.29 | 7.87 | 4.89 | 3.65 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,591,000K ÷ $564,000K
= 4.59
Keurig Dr Pepper Inc's interest coverage ratio has displayed fluctuating trends over the periods indicated. The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio showed an increasing trend, reaching its peak at 7.87 on September 30, 2020. This indicates that the company's operating income was more than sufficient to cover its interest expenses during this period.
However, from December 31, 2020, to March 31, 2022, there was a decline in the interest coverage ratio, indicating that the company's ability to cover its interest payments decreased during this period.
Subsequently, from June 30, 2022, to December 31, 2024, the interest coverage ratio fluctuated within a range of 3.21 to 6.79. These fluctuations may suggest a varying ability of the company to meet its interest obligations.
Overall, while the interest coverage ratio of Keurig Dr Pepper Inc has shown some fluctuations over the years, it is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024