Boise Cascad Llc (BCC)
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 | 624,386 | 658,986 | 772,723 | 879,823 | 1,157,849 | 1,229,454 | 1,059,470 | 1,172,170 | 971,803 | 843,522 | 872,708 | 514,703 | 334,989 | 260,689 | 147,017 | 140,347 | 136,500 | 27,400 | 13,000 | 42,000 |
| Interest expense (ttm) | US$ in thousands | 25,496 | 25,494 | 25,541 | 25,519 | 25,412 | 25,274 | 25,155 | 25,185 | 24,806 | 24,668 | 25,391 | 25,677 | 26,223 | 26,652 | 26,182 | 26,035 | 26,051 | 26,121 | 26,174 | 26,268 |
| Interest coverage | 24.49 | 25.85 | 30.25 | 34.48 | 45.56 | 48.65 | 42.12 | 46.54 | 39.18 | 34.19 | 34.37 | 20.05 | 12.77 | 9.78 | 5.62 | 5.39 | 5.24 | 1.05 | 0.50 | 1.60 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $624,386K ÷ $25,496K
= 24.49
The interest coverage ratio for Boise Cascade Co has shown a consistent improvement over the past eight quarters. In Q1 2022, the company had an interest coverage ratio of 46.79, which indicates that Boise Cascade Co generated 46.79 times more operating income than the interest expenses it incurred during that period.
This ratio increased significantly in subsequent quarters, reaching 87.93 in Q4 2022 and further improving to 242.10 in Q1 2023. These higher ratios reflect the company's strengthened ability to meet its interest obligations through its operational performance.
Boise Cascade Co's improving interest coverage ratio indicates a positive trend in the company's financial health and its ability to comfortably service its debt obligations. It suggests that the company's earnings are more than sufficient to cover its interest expenses, providing a cushion in case of fluctuating operating results or higher interest rates.
Peer comparison
Dec 31, 2023