CACI International Inc (CACI)

Interest coverage

Jun 30, 2025 Mar 31, 2025 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 764,185 755,258 740,193 692,200 649,708 600,754 574,484 572,046 567,500 538,541 508,863 502,103 496,329 488,542 514,624 532,056 539,451 561,077 523,315 491,963
Interest expense (ttm) US$ in thousands 158,844 137,454 120,005 103,458 105,059 104,914 100,816 93,239 83,861 70,971 56,485 47,552 41,757 42,306 42,176 40,254 39,836 38,468 43,601 49,228
Interest coverage 4.81 5.49 6.17 6.69 6.18 5.73 5.70 6.14 6.77 7.59 9.01 10.56 11.89 11.55 12.20 13.22 13.54 14.59 12.00 9.99

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $764,185K ÷ $158,844K
= 4.81

The interest coverage ratios for CACI International Inc from September 30, 2020, through June 30, 2025, depict a general trend of decline over this period, with some fluctuations. Starting at a robust 9.99x on September 30, 2020, the ratio increased to a peak of 14.59x by March 31, 2021, indicating a strong capacity to meet interest obligations relative to earnings during this period. Subsequently, the ratio stabilized at relatively high levels, remaining above 11x through December 31, 2021, and the first half of 2022, illustrating consistent interest coverage.

However, beginning in the latter half of 2022, the ratio experienced a noticeable downward trajectory, declining from 9.01x on December 31, 2022, to 7.59x on March 31, 2023, and further decreasing to approximately 6.77x by June 30, 2023, and 6.14x by September 30, 2023. This suggests a gradual reduction in the company's ability to comfortably cover its interest expenses from earnings.

The decline appears to accelerate slightly toward the end of 2023, with ratios decreasing to 5.70x on December 31, 2023, and marginally increasing again in early 2024 to 5.73x in March and to 6.18x in June before rising to 6.69x on September 30, 2024. This fluctuation may reflect variations in earnings or interest expenses during this period.

Looking into projections into 2025, the interest coverage ratio continues a declining trend, reaching 5.49x on March 31, 2025, and 4.81x on June 30, 2025. Overall, the data indicates that while CACI maintained a comfortable cushion for covering interest expenses in the earlier years, this margin has narrowed significantly over time, approaching levels that, while still generally sufficient, suggest a diminishing buffer. This trend emphasizes the importance of monitoring earnings performance and debt management strategies moving forward.