Visteon Corp (VC)
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 | 306,000 | 305,000 | 344,000 | 285,000 | 273,000 | 255,000 | 223,000 | 217,000 | 197,000 | 184,000 | 131,000 | 91,000 | 86,000 | 68,000 | 116,000 | 86,000 | 27,000 | 48,000 | 25,000 | 74,000 |
| Interest expense (ttm) | US$ in thousands | 15,000 | 16,000 | 16,000 | 16,000 | 15,000 | 15,000 | 14,000 | 14,000 | 14,000 | 12,000 | 11,000 | 10,000 | 10,000 | 10,000 | 14,000 | 16,000 | 16,000 | 16,000 | 14,000 | 12,000 |
| Interest coverage | 20.40 | 19.06 | 21.50 | 17.81 | 18.20 | 17.00 | 15.93 | 15.50 | 14.07 | 15.33 | 11.91 | 9.10 | 8.60 | 6.80 | 8.29 | 5.38 | 1.69 | 3.00 | 1.79 | 6.17 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $306,000K ÷ $15,000K
= 20.40
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Analyzing Visteon Corp's interest coverage ratio over the past few years, we observe fluctuations in the ratio. As of December 31, 2024, the interest coverage ratio stands at 20.40, reflecting a significant improvement compared to previous periods. This suggests that Visteon Corp is generating sufficient earnings to cover its interest expenses comfortably.
The trend in Visteon Corp's interest coverage ratio has been generally positive since June 2021, showing a consistent increase over time. This indicates improved financial health and a reduced risk of default on debt obligations.
Overall, Visteon Corp's interest coverage ratio has shown a favorable upward trajectory in recent periods, reflecting a strengthened ability to handle interest payments and indicating a positive financial outlook for the company.
Peer comparison
Dec 31, 2024