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.