Keurig Dr Pepper Inc (KDP)
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 | 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 | 2,348,000 | 2,179,000 | 1,975,000 | 1,528,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 654,000 | 677,000 | 691,000 | 564,000 |
| Interest coverage | 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 | 3.59 | 3.22 | 2.86 | 2.71 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,192,000K ÷ $496,000K
= 6.44
The interest coverage ratio for Keurig Dr Pepper Inc has shown an improving trend over the past few quarters. In Q4 2023, the interest coverage ratio stood at 6.44, indicating that the company generated operating profits 6.44 times greater than its interest expenses for that period. This represents an increase from the previous quarter where the ratio was 5.57.
The interest coverage ratio has been steadily increasing since Q1 2022 when it was at 5.33, reaching its peak in the most recent quarter. This improvement suggests that Keurig Dr Pepper Inc has been effectively managing its interest obligations relative to its operating income.
Overall, the increasing trend in the interest coverage ratio reflects the company's ability to comfortably meet its interest payments and indicates a stronger financial position in terms of debt servicing capability.
Peer comparison
Dec 31, 2023