Builders FirstSource Inc (BLDR)

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	2,176,319	2,211,888	2,584,790	3,373,588	3,770,210	3,865,995	3,688,905	3,003,273	2,387,424	1,979,528	1,281,846	730,863	543,854	405,098	394,972	381,362	392,306	407,645	399,801	388,715
Interest expense (ttm)	US$ in thousands	192,115	187,550	181,468	199,167	198,373	156,182	112,124	41,480	360	701	1,030	1,304	1,424	1,346	1,258	1,180	1,116	24,219	53,031	81,721
Interest coverage		11.33	11.79	14.24	16.94	19.01	24.75	32.90	72.40	6,631.73	2,823.86	1,244.51	560.48	381.92	300.96	313.97	323.19	351.53	16.83	7.54	4.76

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,176,319K ÷ $192,115K
= 11.33

Builders Firstsource Inc has maintained a consistently strong interest coverage ratio over the last eight quarters, with values ranging from 11.33 to 20.66. The ratio indicates that the company's earnings before interest and taxes are more than sufficient to cover its interest expenses, reflecting a healthy financial position. The trend of increasing interest coverage from Q4 2022 to Q1 2023 suggests improved profitability and efficiency in managing debt obligations. Despite a slight decrease in Q4 2023 compared to previous quarters, the company's interest coverage remains at a comfortable level, showcasing its ability to comfortably meet interest payments. Overall, the data reflects Builders Firstsource Inc's strong financial performance and its ability to manage debt effectively.