Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Paying user area
Try for free
Western Digital Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Western Digital Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Solvency Ratios (Summary)
Western Digital Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
- Debt to Equity Ratio
- The debt to equity ratio demonstrates a declining trend from September 2018 through December 2021, decreasing from 0.98 to 0.61, indicating a reduction in relative leverage during this period. After this low point, the ratio gradually increases, reaching 0.77 by December 2023. This suggests a recent modest rise in the company’s debt relative to equity.
- Debt to Capital Ratio
- This ratio follows a similar pattern to the debt to equity ratio. It starts at 0.49 in September 2018, decreases steadily to 0.38 by December 2021, reflecting lower leverage, and then moves upward to 0.43 by the end of 2023. The minor uptick in recent quarters suggests a cautious increase in total debt relative to capital structure.
- Debt to Assets Ratio
- The debt to assets ratio maintains a relatively stable range with a slight downward trend from 0.39 in late 2018 to 0.28 near the end of 2021, illustrating reduced debt burden compared to total assets. Post-2021, this ratio stabilizes around 0.28 to 0.29 before slightly increasing to 0.34 by the end of 2023, indicating a marginal increase in leverage relative to assets.
- Financial Leverage Ratio
- The financial leverage ratio shows a gradual decline from 2.52 in September 2018 to 2.17 by December 2021, signaling a reduction in the use of debt financing. Following this period, the ratio remains relatively stable with a slight increase in later quarters, finishing at 2.23 in December 2023, which reflects a modest increase in overall leverage.
- Interest Coverage Ratio
- The interest coverage ratio exhibits significant volatility across the periods. It starts fairly strong at 4.34 in September 2018 but declines sharply to negative values by mid-2019 and early 2020, indicating periods of negative operating income relative to interest expenses. Starting in late 2020, the ratio improves steadily, reaching a peak of 8.15 by April 2022, reflecting strong earnings relative to interest obligations. However, from mid-2022 onwards, the coverage deteriorates substantially, turning negative again in late 2022 through 2023, which signals renewed challenges in covering interest expenses during this latest period.
Debt Ratios
Coverage Ratios
Debt to Equity
Western Digital Corp., debt to equity calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrates a general downward trend from September 2018 through December 2022, decreasing from approximately $11.1 billion to about $7.1 billion. This decline suggests a consistent effort to reduce liabilities over this period. However, starting in the first quarter of 2023, total debt exhibits an upward movement, rising to approximately $8.4 billion by the end of December 2023. This recent increase may indicate new borrowing or other changes in financing strategy.
- Shareholders’ Equity
- Shareholders’ equity initially decreases from around $11.4 billion in September 2018 to roughly $9.6 billion in October 2019, reflecting potential declines in retained earnings or other equity components. From late 2019 onward, equity steadily increases, peaking near $12 billion in late 2021 and early 2022. Subsequently, it fluctuates but remains relatively stable, ending close to $10.9 billion at the close of 2023. This overall pattern implies periods of equity growth following initial declines, with some variability in the most recent quarters.
- Debt to Equity Ratio
- The debt to equity ratio closely mirrors the trends of total debt and shareholders’ equity. It starts near parity at about 0.98 in late 2018 and rises slightly above 1.0 in early 2019, indicating debt levels roughly equal to equity. From late 2019 to late 2021, the ratio steadily decreases, reaching a low point around 0.6, signaling a strengthening equity base relative to debt. However, starting in early 2023, the ratio increases again, climbing to approximately 0.77 by the end of 2023. This shift aligns with the recent uptick in total debt and suggests a moderate increase in financial leverage in the latest period.
Debt to Capital
Western Digital Corp., debt to capital calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a gradual decline from approximately $11.14 billion at the end of September 2018 to about $7.07 billion by mid-2023. This steady reduction persisted through this period, indicating a consistent effort to deleverage. Notably, toward the end of 2023, there was a reversal in this trend with total debt rising to approximately $8.39 billion, suggesting a potential increase in borrowing or refinancing activity.
- Total Capital
- Total capital followed a similar downward trajectory, decreasing from around $22.52 billion in late 2018 to approximately $18.79 billion by mid-2023. Despite some fluctuations, the overall trend reflects a modest contraction in total capital. In the last reported quarters, there was a slight recovery with total capital increasing to roughly $19.34 billion, which could be related to changes in debt levels or equity adjustments.
- Debt to Capital Ratio
- The debt to capital ratio started close to 0.49 in late 2018 and remained relatively stable around 0.50 to 0.52 for the first half of the timeline. Beginning in early 2021, this ratio began a consistent downward trend, reaching a low near 0.36 by mid-2023, reflecting diminished leverage and a stronger equity base relative to debt. However, in the final quarters of 2023, the ratio increased again to approximately 0.43, aligning with the uptick in total debt and indicating a reversal toward a higher leverage position.
- Overall Analysis
- The data presents a clear pattern of gradual deleveraging and reduction in capital base over the multi-year period from 2018 to mid-2023, with a more conservative capital structure reflected in the declining debt to capital ratio. The recent uptick in total debt and corresponding increase in leverage ratios in late 2023 may indicate a strategic shift in financing strategy or market conditions prompting increased borrowing. Continuous monitoring of these metrics is advisable to assess the sustainability of the capital structure and the impact on financial risk levels.
Debt to Assets
Western Digital Corp., debt to assets calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt shows a gradual decline from approximately $11.1 billion in late September 2018 to about $7.1 billion in late December 2022. This reduction indicates a consistent effort to lower debt levels over several years. However, starting from late December 2022, the debt exhibits a rising trend, increasing from around $7.1 billion to approximately $8.4 billion by the end of December 2023. This reversal suggests recent additional borrowing or debt accumulation after a prolonged period of deleveraging.
- Total Assets
-
Total assets demonstrate a downward trend from about $28.7 billion in late September 2018 to roughly $24.0 billion by the end of September 2023, with some fluctuations throughout. The assets slightly recovered in some quarters, as noted in mid-2021 and mid-2022, but the overall pattern is one of gradual asset reduction. This contraction may reflect asset sales, depreciation, or reduced investment in new assets over the period analyzed.
- Debt to Assets Ratio
-
The debt to assets ratio declines steadily from 0.39 in September 2018 to a low of approximately 0.27 by mid-2022, reflecting the combined effect of decreasing debt and a somewhat stable asset base during this time. This decline suggests improved financial leverage and potentially lower risk exposure. However, starting from the latter part of 2022, the ratio begins to climb again, reaching about 0.34 by the end of 2023. This increase corresponds with the rise in total debt and decline in assets, indicating a return to higher leverage and potential financial risk.
- Overall Observations
-
Over the period under review, the company exhibits a clear pattern of deleveraging and moderate asset contraction until late 2022, which is generally beneficial from a financial stability perspective. The subsequent rise in debt alongside a continued decline in assets during 2023 suggests a shift in financial strategy or response to market or operational conditions, leading to increased leverage. Monitoring this recent trend will be important for assessing the company’s financial risk and capital structure moving forward.
Financial Leverage
Western Digital Corp., financial leverage calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets of the company exhibit a general declining trend over the observed period from late 2018 through late 2023. Starting at approximately $28.7 billion in September 2018, there is a steady decrease reaching around $24.0 billion by December 2023. Minor fluctuations occur intermittently, but the overall direction is downwards, indicating a gradual reduction in the asset base.
- Shareholders’ Equity
- Shareholders’ equity shows a more variable pattern with an initial decline from about $11.4 billion in September 2018 to a low near $9.2 billion by April 2020. Subsequently, there is a steady recovery and growth phase, peaking at approximately $12.0 billion by the end of 2021. After this peak, equity levels remain relatively stable with a slight downward adjustment towards the end of 2023, stabilizing around $10.9 billion. This indicates a period of strengthening followed by modest contraction in the company’s net worth.
- Financial Leverage
- The financial leverage ratio starts at 2.52 in September 2018 and shows a gradual increase until early 2020, reaching a high near 2.76. After this point, the ratio declines significantly through 2021, hitting a low around 2.14 in early 2022, suggesting a reduction in reliance on debt financing or increase in equity relative to total assets. From mid-2022 onwards, the leverage ratio experiences a modest upward trend, increasing again to approximately 2.23 by the end of 2023. This reflects a recent return to higher leverage levels, though still below the earlier peak in 2020.
- Summary of Financial Position
- Overall, the company’s total assets have steadily reduced over the five-year span, possibly indicating asset sales, depreciation, or strategic downsizing. Shareholders’ equity has fluctuated, with a significant recovery phase between 2020 and 2021, implying possible retention of earnings or capital injections during that period. Financial leverage trends suggest an initial increase in debt relative to equity until 2020, followed by deleveraging efforts through 2021 and early 2022. The slight uptick in leverage toward 2023 signals a cautious return to higher debt usage. The interplay among these metrics suggests that the company has undergone phases of restructuring and financial optimization, balancing asset base contraction with efforts to strengthen its equity position and adjust its capital structure.
Interest Coverage
Western Digital Corp., interest coverage calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Interest coverage
= (EBITQ2 2024
+ EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023)
÷ (Interest expenseQ2 2024
+ Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The company’s EBIT demonstrates significant volatility over the observed period. Starting from a positive level of 699 million USD in late September 2018, the EBIT declines sharply, reaching negative values in early 2019 and mid-2019. There is a recovery phase beginning in early 2020, with EBIT increasing to a peak of 782 million USD by October 2021. Following this peak, the EBIT again trends downward, turning negative from December 2022 onwards, with the lowest value recorded at -641 million USD in June 2023. The pattern indicates cyclical profitability challenges, with periods of recovery followed by marked declines.
- Interest expense
- Interest expense shows a more stable and gradual declining trend across the timeline, starting at 116 million USD in September 2018 and mostly decreasing to 70 million USD by late 2022. However, from early 2023 onwards, interest expenses rise again, progressing to 108 million USD at the end of 2023. This fluctuation suggests some variability in debt servicing costs, potentially linked to changes in borrowing or interest rates.
- Interest coverage ratio
- The interest coverage ratio reflects the company’s ability to meet interest obligations from EBIT and exhibits considerable fluctuation. Initially, the ratio starts at a robust 4.34 in September 2018 but declines sharply to negative values during early to mid-2019, indicating EBIT was insufficient to cover interest expenses during those periods. After early 2020, the coverage improves markedly, peaking at 8.15 in April 2022, which coincides with a period of increased EBIT. Subsequently, the ratio deteriorates significantly, descending into negative territory from December 2022 onward, reaching its lowest level around -5.84 in September 2023. This evolution indicates worsening financial leverage and reduced EBIT sufficiency for interest coverage towards the end of the timeline.