ASGN Inc (ASGN)

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	364,100	410,700	529,000	303,900	282,300
Interest expense	US$ in thousands	66,400	45,900	37,500	39,700	52,900
Interest coverage		5.48	8.95	14.11	7.65	5.34

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $364,100K ÷ $66,400K
= 5.48

The interest coverage ratio of ASGN Inc has fluctuated over the past five years, ranging from 5.83 in 2019 to 9.36 in 2021. This ratio measures the company's ability to pay interest on its outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations.

In 2023, the interest coverage ratio decreased to 5.48, which may raise some concerns about the company's ability to cover its interest expenses from its operating earnings. Despite the decrease, the ratio remains above 1, suggesting that ASGN Inc still generates enough operating income to cover its interest payments. However, investors and creditors may monitor this trend closely to ensure the company's financial health and ability to manage its debt obligations.

Overall, fluctuations in the interest coverage ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of ASGN Inc's financial performance and stability.