Aecom Technology Corporation (ACM)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 720,303 | 564,259 | 220,969 | 324,284 | 313,677 | 417,343 | 706,997 | 621,048 | 637,584 | 623,884 | 610,563 | 656,682 | 629,600 | 524,600 | 483,000 | 435,500 | 381,500 | 447,900 | 454,500 | 452,500 |
| Interest expense (ttm) | US$ in thousands | 94,180 | -17,460 | 17,408 | 12,057 | 7,500 | 48,068 | 36,616 | -3,956 | -38,956 | 32,316 | 10,100 | 11,300 | 12,200 | 12,900 | 9,400 | 8,200 | 7,400 | 8,700 | 9,400 | 10,000 |
| Interest coverage | 7.65 | — | 12.69 | 26.90 | 41.82 | 8.68 | 19.31 | — | — | 19.31 | 60.45 | 58.11 | 51.61 | 40.67 | 51.38 | 53.11 | 51.55 | 51.48 | 48.35 | 45.25 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $720,303K ÷ $94,180K
= 7.65
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Aecom Technology Corporation, the interest coverage ratio has shown fluctuations over the periods. In some quarters, the interest coverage ratio was quite strong, indicating the company's ability to comfortably cover its interest payments. For example, in March 2022, the interest coverage ratio was 60.45, and in September 2022, it was 51.48.
However, there are some periods where the interest coverage ratio is not available (denoted by the symbol '—'), suggesting that either the company did not have any interest expense during those periods or the financial data for interest expense was not disclosed.
Overall, the trend indicates that Aecom Technology Corporation generally maintains a healthy interest coverage ratio, suggesting a strong financial position to meet its interest obligations. The company's ability to consistently generate enough operating income to cover its interest expenses bodes well for its financial stability and creditworthiness. Investors and creditors often look at the interest coverage ratio as a key financial metric to assess the risk associated with a company's debt levels.
Peer comparison
Sep 30, 2024