Asbury Automotive Group Inc (ABG)

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	953,400	1,131,500	1,180,400	1,228,200	1,272,500	1,206,000	1,093,400	976,300	791,800	690,200	608,300	472,100	370,800	315,400	278,500	282,200	325,000	323,200	321,800	315,500
Interest expense (ttm)	US$ in thousands	165,700	161,400	161,300	159,600	159,800	172,600	148,800	125,600	102,100	61,100	59,200	56,600	59,600	58,700	59,700	61,700	58,600	58,300	57,600	57,000
Interest coverage		5.75	7.01	7.32	7.70	7.96	6.99	7.35	7.77	7.76	11.30	10.28	8.34	6.22	5.37	4.66	4.57	5.55	5.54	5.59	5.54

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $953,400K ÷ $165,700K
= 5.75

The interest coverage ratio for Asbury Automotive Group Inc has shown positive trends throughout the quarters provided in the table. The ratio has consistently remained above 6, indicating that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses. The highest interest coverage ratio was observed in Q4 2022 at 7.90, indicating a strong ability to meet interest obligations.

Overall, the company's interest coverage ratio has remained relatively stable, with slight fluctuations quarter to quarter but generally staying within a healthy range above 6. This suggests that Asbury Automotive Group Inc is effectively managing its interest expenses and has a comfortable cushion to handle its debt obligations. Investors and creditors typically view a higher interest coverage ratio as a positive indicator of financial health and ability to service debt.