Arcosa Inc (ACA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 224,000 | 347,200 | 107,000 | 148,800 | 153,600 |
| Interest expense | US$ in thousands | 28,100 | 31,000 | 23,400 | 10,600 | 6,800 |
| Interest coverage | 7.97 | 11.20 | 4.57 | 14.04 | 22.59 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $224,000K ÷ $28,100K
= 7.97
The interest coverage ratio for Arcosa Inc has fluctuated over the past five years. It decreased from 28.31 in 2019 to 15.58 in 2020, then further declined to 4.71 in 2021 before slightly improving to 5.35 in 2022 and 7.81 in 2023. The recent increase in 2023 indicates that the company's ability to cover its interest expenses with its earnings has strengthened compared to the previous two years. However, it is still below the high levels seen in 2019. Overall, Arcosa Inc's interest coverage ratio has shown variability, suggesting potential changes in its financial performance and risk management strategies over the years.
Peer comparison
Dec 31, 2023