Dorian LPG Ltd (LPG)

Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

Analyzing the interest coverage of Dorian LPG Ltd over the past five years reveals the following trend:

- As of March 31, 2021, the interest coverage ratio was 5.55, indicating that the company generated 5.55 times the amount of earnings needed to cover its interest expenses. This implies a relatively strong ability to meet its interest obligations.

- By March 31, 2022, the interest coverage ratio decreased to 4.29, which may raise concerns as it signals a decline in the company's ability to cover its interest payments from its earnings.

- However, there was a notable improvement in the interest coverage ratio for the following years. By March 31, 2023, the ratio increased significantly to 6.60, indicating a more comfortable position in meeting interest obligations.

- The trend continued to improve as of March 31, 2024, with the interest coverage ratio reaching 8.12. This suggests a strong ability to cover interest expenses with earnings.

- Notably, there is an absence of data for March 31, 2025, which may make it challenging to assess the most recent performance of Dorian LPG Ltd in terms of interest coverage.

In conclusion, the historical trend of Dorian LPG Ltd's interest coverage ratio shows fluctuations, with some years demonstrating an improved ability to cover interest expenses from earnings, while others show a decline. Monitoring this ratio over time is critical to assess the company's financial health and ability to manage its debt effectively.