Visteon Corp (VC)

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	255,000	240,000	205,000	203,000	183,000	168,000	123,000	84,000	82,000	67,000	80,000	46,000	-12,000	5,000	12,000	68,000	107,000	108,000	111,000	143,000
Interest expense (ttm)	US$ in thousands	17,000	17,000	16,000	16,000	14,000	12,000	11,000	10,000	10,000	10,000	14,000	16,000	16,000	17,000	15,000	13,000	13,000	13,000	13,000	13,000
Interest coverage		15.00	14.12	12.81	12.69	13.07	14.00	11.18	8.40	8.20	6.70	5.71	2.88	-0.75	0.29	0.80	5.23	8.23	8.31	8.54	11.00

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $255,000K ÷ $17,000K
= 15.00

The interest coverage ratio for Visteon Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio was robust at 38.57, indicating that the company earned 38.57 times the amount needed to cover its interest expenses for that quarter. This represents a significant improvement compared to the previous quarters, where the ratio ranged from 11.50 to 24.90.

Despite the quarterly fluctuations, Visteon Corp. generally maintained a healthy interest coverage ratio above 15 for the past two years, demonstrating its ability to comfortably meet its interest payment obligations through operating earnings. This suggests a strong financial position and indicates that the company has sufficient earnings to cover its interest expenses, which is favorable from a creditor and investor perspective.

It is essential for investors and stakeholders to monitor Visteon Corp.'s interest coverage ratio over time to ensure the company can continue to meet its debt obligations and remain financially stable.