Tesla Inc (TSLA)

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	10,152,000	11,911,000	13,503,000	12,957,000	13,879,000	12,567,000	10,884,000	9,708,000	6,589,000	4,504,000	3,217,000	2,180,000	1,761,000	1,479,000	1,153,000	641,000	-67,000	-47,000	102,000	-221,711
Interest expense (ttm)	US$ in thousands	156,000	128,000	143,000	159,000	191,000	229,000	302,000	333,000	371,000	546,000	583,000	678,000	748,000	672,000	694,000	696,000	685,000	690,000	680,000	671,582
Interest coverage		65.08	93.05	94.43	81.49	72.66	54.88	36.04	29.15	17.76	8.25	5.52	3.22	2.35	2.20	1.66	0.92	-0.10	-0.07	0.15	-0.33

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $10,152,000K ÷ $156,000K
= 65.08

The interest coverage ratio for Tesla Inc is not available for the periods ending December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023. However, for the periods ending December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, the interest coverage ratios were 152.12, 39.38, 28.81, and not available respectively.

The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations. The significant improvement from 28.81 in March 2022 to 152.12 in December 2022 reflects a positive trend in Tesla's ability to cover its interest expenses, indicating a stronger financial position and improved ability to service its debt obligations. However, the absence of data for the most recent periods limits a comprehensive analysis of the company's current interest coverage performance.