Aecom Technology Corporation (ACM)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 827,442 | 324,134 | 646,804 | 629,553 | 381,461 |
| Interest expense | US$ in thousands | 7,600 | 7,500 | 7,100 | 12,200 | 7,300 |
| Interest coverage | 108.87 | 43.22 | 91.10 | 51.60 | 52.25 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $827,442K ÷ $7,600K
= 108.87
The interest coverage ratio for Aecom Technology Corporation has shown variations over the past five years. The ratio was highest in September 2024 at 108.87, indicating that the company's operating income was 108.87 times its interest expenses for that period. This signifies a strong ability to cover interest payments from operating profits.
In contrast, the interest coverage ratio was lowest in September 2023 at 43.22, suggesting a relatively weaker ability to cover interest expenses from operating income during that period. However, it improved significantly in the subsequent years, with ratios of 91.10 in September 2022, 51.60 in September 2021, and 52.25 in September 2020.
Overall, the trend in Aecom Technology Corporation's interest coverage ratio indicates fluctuations in the company's ability to meet its interest obligations using operating income. It would be advisable to further assess the underlying factors contributing to these fluctuations to ensure the sustainability of the company's debt obligations.
Peer comparison
Sep 30, 2024