Boise Cascad Llc (BCC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 525,826 | 670,545 | 1,158,860 | 971,727 | 344,279 |
| Interest expense | US$ in thousands | 24,067 | 25,496 | 25,412 | 24,806 | 26,223 |
| Interest coverage | 21.85 | 26.30 | 45.60 | 39.17 | 13.13 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $525,826K ÷ $24,067K
= 21.85
Boise Cascad Llc's interest coverage ratio has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations with its operating income. The interest coverage ratio has increased significantly from 13.13 in December 2020 to 39.17 in December 2021, further strengthening to 45.60 in December 2022. However, there was a slight decline in December 2023 to 26.30, followed by a further decrease to 21.85 in December 2024.
Overall, Boise Cascad Llc's interest coverage ratio remains healthy, with the company being able to cover its interest expenses multiple times with its operating earnings. The fluctuations in the ratio may be attributed to changes in operating income or interest expenses during the respective periods. Monitoring this ratio is crucial for assessing the company's financial stability and debt servicing capacity.
Peer comparison
Dec 31, 2024