Asbury Automotive Group Inc (ABG)
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 | 819,300 | 697,800 | 733,700 | 919,800 | 934,600 | 1,316,400 | 1,360,300 | 1,407,700 | 1,488,400 | 1,224,500 | 1,126,400 | 1,015,800 | 801,300 | 699,500 | 632,800 | 496,600 | 408,100 | 352,900 | 291,300 | 306,800 |
Interest expense (ttm) | US$ in thousands | 269,000 | 250,000 | 220,700 | 194,700 | 165,700 | 157,600 | 159,400 | 158,400 | 160,700 | 172,200 | 148,000 | 125,400 | 102,100 | 68,300 | 67,900 | 67,300 | 74,400 | 77,700 | 84,500 | 92,700 |
Interest coverage | 3.05 | 2.79 | 3.32 | 4.72 | 5.64 | 8.35 | 8.53 | 8.89 | 9.26 | 7.11 | 7.61 | 8.10 | 7.85 | 10.24 | 9.32 | 7.38 | 5.49 | 4.54 | 3.45 | 3.31 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $819,300K ÷ $269,000K
= 3.05
Asbury Automotive Group Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures the company's ability to meet interest payments on its outstanding debt.
From March 31, 2020, to December 31, 2021, the interest coverage ratio steadily increased from 3.31 to 7.85, indicating an improving ability to cover interest expenses with operating income. This trend suggests the company became more efficient in generating earnings relative to its interest obligations during this period.
However, the interest coverage ratio decreased to 5.64 by December 31, 2023, and further declined to 3.05 by December 31, 2024. These decreases may signal a potential decline in Asbury Automotive Group Inc's ability to cover interest expenses with its operating income. A lower interest coverage ratio could indicate difficulties in meeting debt obligations or decreased profitability.
Overall, while there have been fluctuations in Asbury Automotive Group Inc's interest coverage ratio, it is important for investors and analysts to closely monitor this ratio to assess the company's financial health and its ability to manage debt obligations effectively.
Peer comparison
Dec 31, 2024