ASGN Inc (ASGN)
Interest coverage
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 | Mar 31, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 304,400 | 313,600 | 333,300 | 350,800 | 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 |
Interest expense (ttm) | US$ in thousands | 64,300 | 66,100 | 68,600 | 68,600 | 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 |
Interest coverage | 4.73 | 4.74 | 4.86 | 5.11 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $304,400K ÷ $64,300K
= 4.73
The interest coverage ratio for ASGN Inc has shown a generally improving trend over the analyzed period from March 31, 2020, to December 31, 2024. The ratio started at 5.83 on March 31, 2020, and gradually increased to a peak of 14.90 on June 30, 2022. This indicates that the company's operating income was able to cover its interest expense nearly 15 times during that period.
However, from September 30, 2022, onwards, the interest coverage ratio started to decline, reaching 4.74 on September 30, 2024. This decline could potentially raise concerns about the company's ability to meet its interest payments from its operating earnings alone.
The fluctuation in the interest coverage ratio suggests that ASGN Inc may have experienced changes in its operating performance, debt levels, or interest expenses over the analyzed period. Further analysis of the company's financial statements and business operations would be necessary to understand the factors contributing to these fluctuations and to assess the company's overall financial health and solvency.
Peer comparison
Dec 31, 2024