NXP Semiconductors NV (NXPI)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,758,000 | 3,795,000 | 3,772,000 | 3,712,000 | 3,743,000 | 3,354,000 | 3,068,000 | 2,715,000 | 2,320,000 | 2,142,000 | 1,453,000 | 748,000 | 331,000 | 121,000 | 335,000 | 699,000 |
| Interest expense (ttm) | US$ in thousands | 438,000 | 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 | 352,000 |
| Interest coverage | 8.58 | 8.68 | 8.63 | 8.55 | 8.77 | 8.08 | 7.63 | 7.03 | 6.29 | 5.97 | 4.00 | 2.04 | 0.91 | 0.33 | 0.91 | 1.99 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,758,000K ÷ $438,000K
= 8.58
The interest coverage ratio for NXP Semiconductors NV has been improving steadily over the past eight quarters, indicating the company's ability to comfortably meet its interest payment obligations. The ratio has displayed a consistent upward trend, starting at 7.81 in Q1 2022 and reaching 14.62 in Q4 2023. This suggests that the company's operating income is more than sufficient to cover its interest expenses, providing a buffer against potential financial distress and signaling strong financial health. The continuous improvement in the interest coverage ratio reflects positively on NXP Semiconductors NV's financial management and operational performance.
Peer comparison
Dec 31, 2023