ASGN Inc (ASGN)

Interest coverage

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	364,100	371,100	383,000	395,100	410,700	435,400	570,700	555,500	529,000	494,900	328,200	307,800	305,400	279,900	291,600	290,500	282,300	301,300	284,700	277,000
Interest expense (ttm)	US$ in thousands	66,400	64,100	57,700	52,000	45,900	40,800	38,300	37,600	37,500	37,500	37,200	37,500	39,700	42,100	45,500	49,800	52,900	55,500	57,400	63,900
Interest coverage		5.48	5.79	6.64	7.60	8.95	10.67	14.90	14.77	14.11	13.20	8.82	8.21	7.69	6.65	6.41	5.83	5.34	5.43	4.96	4.33

December 31, 2023 calculation

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

ASGN Inc's interest coverage ratio has exhibited a decreasing trend over the past eight quarters, starting at 10.42 in Q2 2022 and declining to 5.48 in Q4 2023. The interest coverage ratio measures the company's ability to meet interest payment obligations on its debt, with a higher ratio indicating stronger financial health.

The gradual decline in ASGN Inc's interest coverage may suggest that the company's earnings before interest and taxes (EBIT) are becoming less adequate to cover its interest expenses. A higher interest coverage ratio is generally favorable as it implies that the company has more earnings available to meet its interest payments.

Despite the decline, ASGN Inc's interest coverage remains above 1, which indicates that the company is generating sufficient earnings to cover its interest expenses. However, stakeholders may monitor this trend closely to ensure that the company's financial health remains stable and that it can continue to service its debt obligations comfortably.