Visteon Corp (VC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 313,000 | 274,000 | 189,000 | 91,000 | -3,000 |
| Interest expense | US$ in thousands | 15,000 | 17,000 | 14,000 | 10,000 | 16,000 |
| Interest coverage | 20.87 | 16.12 | 13.50 | 9.10 | -0.19 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $313,000K ÷ $15,000K
= 20.87
To analyze Visteon Corp's interest coverage, we can use the provided data from 2020 to 2024:
- December 31, 2020: -0.19
- December 31, 2021: 9.10
- December 31, 2022: 13.50
- December 31, 2023: 16.12
- December 31, 2024: 20.87
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt obligations.
In 2020, Visteon Corp reported an interest coverage ratio of -0.19, which suggests that the company's income was insufficient to cover its interest expenses. This may raise concerns about the company's financial health and ability to meet its debt obligations.
However, the ratio improved significantly in the subsequent years, reaching 9.10 in 2021, 13.50 in 2022, 16.12 in 2023, and 20.87 in 2024. These increasing values indicate a positive trend and reflect Visteon Corp's improved ability to cover its interest payments comfortably as its income grew relative to its interest expenses.
Overall, the trend in Visteon Corp's interest coverage ratio shows a positive trajectory, implying enhanced financial stability and a reduced risk of default on its debt obligations over the years.
Peer comparison
Dec 31, 2024