Api Group Corp (APG)
Interest coverage
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 463,000 | 563,000 | 448,000 | 427,000 | 408,000 | 384,000 | 416,000 | 367,000 | 327,000 | 255,000 | 195,000 | 165,000 | 142,000 | 139,000 | 82,000 | 92,000 | 72,000 | -160,000 | -289,000 | -317,333 |
| Interest expense (ttm) | US$ in thousands | 150,000 | 146,000 | 143,000 | 139,000 | 142,000 | 145,000 | 149,000 | 145,000 | 135,000 | 125,000 | 105,000 | 86,000 | 72,000 | 60,000 | 54,000 | 53,000 | 53,000 | 52,000 | 56,000 | 49,388 |
| Interest coverage | 3.09 | 3.86 | 3.13 | 3.07 | 2.87 | 2.65 | 2.79 | 2.53 | 2.42 | 2.04 | 1.86 | 1.92 | 1.97 | 2.32 | 1.52 | 1.74 | 1.36 | -3.08 | -5.16 | -6.43 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $463,000K ÷ $150,000K
= 3.09
The interest coverage ratio for Api Group Corp exhibits notable fluctuations over the observed period from June 30, 2020, through March 31, 2025. During the second half of 2020, the ratios were negative, with values of -6.43, -5.16, and -3.08, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses, reflecting significant financial distress or losses during this period.
Beginning in March 2021, there was a marked improvement, with the ratio turning positive at 1.36 and further rising to 1.74 by June 2021. This upward trend continued somewhat steadily through 2021 and into 2022, with ratios mostly remaining above 1.5, peaking around 2.42 in March 2023. A consistent increase in interest coverage suggests an improvement in the company's ability to meet interest obligations, likely driven by improved earnings or decreased interest expenses.
From late 2022 onward, the ratios further strengthened, reaching approximately 3.86 in December 2024. This indicates that the company’s EBIT was approximately three to four times greater than its interest expenses, reflecting a healthy financial position in terms of interest servicing capacity.
Overall, the trend indicates a transition from a period of financial distress in 2020 to more stable and healthier interest coverage levels in subsequent years. The ratios suggest an improving solvency position, with the company increasingly capable of covering its interest obligations comfortably as of the most recent data points in 2024 and early 2025.
Peer comparison
Mar 31, 2025