Dorian LPG Ltd (LPG)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 104,587 | 194,737 | 274,541 | 342,502 | 336,784 | 331,867 | 281,717 | 227,198 | 210,248 | 168,846 | 132,939 | 120,290 | 99,003 | 104,962 | 122,881 | 110,424 | 120,160 | 104,371 | 104,218 | 146,281 |
| Interest expense (ttm) | US$ in thousands | 33,206 | 35,053 | 36,246 | 37,123 | 38,009 | 32,236 | 30,795 | 32,477 | 30,032 | 29,800 | 28,576 | 22,137 | 19,828 | 24,377 | 23,052 | 24,159 | 27,596 | 26,415 | 29,107 | 31,745 |
| Interest coverage | 3.15 | 5.56 | 7.57 | 9.23 | 8.86 | 10.29 | 9.15 | 7.00 | 7.00 | 5.67 | 4.65 | 5.43 | 4.99 | 4.31 | 5.33 | 4.57 | 4.35 | 3.95 | 3.58 | 4.61 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $104,587K ÷ $33,206K
= 3.15
Dorian LPG Ltd's interest coverage ratio has shown some volatility over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.
The interest coverage ratio for Dorian LPG Ltd has fluctuated between 3.15 and 10.29 over the period from June 30, 2020, to March 31, 2025. The ratio started at 4.61 on June 30, 2020, and decreased to a low of 3.15 on March 31, 2025, showing some weakness in the company's ability to cover its interest expenses with its operating income.
However, there were periods of improvement in the interest coverage ratio, such as reaching a high of 10.29 on December 31, 2023. This indicates a strong ability to cover interest payments during that period.
Overall, the fluctuating trend in Dorian LPG Ltd's interest coverage ratio suggests varying levels of financial health in terms of meeting interest obligations. Investors and stakeholders should monitor this ratio closely to assess the company's ability to manage its debt and financial obligations effectively.