NXP Semiconductors NV (NXPI)
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 | 3,551,000 | 3,774,000 | 3,774,000 | 3,776,000 | 3,713,000 | 3,786,000 | 3,781,000 | 3,778,000 | 3,807,000 | 3,656,000 | 3,350,000 | 2,988,000 | 2,608,000 | 2,182,000 | 1,497,000 | 779,000 | 359,000 | 151,000 | 368,000 | 764,000 |
| Interest expense (ttm) | US$ in thousands | 398,000 | 376,000 | 389,000 | 401,000 | 407,000 | 437,000 | 437,000 | 434,000 | 427,000 | 415,000 | 402,000 | 386,000 | 369,000 | 359,000 | 363,000 | 367,000 | 362,000 | 372,000 | 370,000 | 374,000 |
| Interest coverage | 8.92 | 10.04 | 9.70 | 9.42 | 9.12 | 8.66 | 8.65 | 8.71 | 8.92 | 8.81 | 8.33 | 7.74 | 7.07 | 6.08 | 4.12 | 2.12 | 0.99 | 0.41 | 0.99 | 2.04 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,551,000K ÷ $398,000K
= 8.92
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the data provided for NXP Semiconductors NV over the past few quarters:
- The interest coverage ratio was 2.04 as of March 31, 2020, indicating that the company generated operating income 2.04 times the amount needed to cover its interest expenses.
- The ratio decreased to 0.99 in June 30, 2020, implying that the company's operating income was just enough to cover its interest payments.
- The ratio further declined to 0.41 by September 30, 2020, suggesting that the company's operating income was insufficient to cover its interest costs.
- However, the trend started to improve, with the ratio increasing to 7.07 by December 31, 2021, and continuing to rise in the following quarters.
- As of December 31, 2024, the interest coverage ratio stood at 8.92, indicating a substantial increase in the company's ability to cover its interest expenses.
Overall, the trend in NXP Semiconductors NV's interest coverage ratio shows improvement over the analyzed period, reflecting a stronger ability to meet its interest obligations with operating income. This positive trend indicates a more stable financial position with regards to debt servicing capabilities.
Peer comparison
Dec 31, 2024