Century Communities Inc (CCS)

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	518,960	408,930	738,000	700,322	337,040
Interest expense	US$ in thousands	78,900	58,100	61,100	59,200	66,800
Interest coverage		6.58	7.04	12.08	11.83	5.05

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $518,960K ÷ $78,900K
= 6.58

Century Communities Inc's interest coverage has shown a generally positive trend over the last five years. In December 31, 2020, the interest coverage was at 5.05, indicating that the company's earnings were sufficient to cover its interest expenses 5.05 times.

By December 31, 2021, the interest coverage ratio improved significantly to 11.83, suggesting a stronger ability to meet interest obligations. This trend continued in the subsequent years, reaching 12.08 by December 31, 2022, further demonstrating the company's improved capacity to cover its interest expenses from its earnings.

However, there was a slight decline in the interest coverage ratio to 7.04 by December 31, 2023, which may indicate a potential decrease in the company's ability to cover interest payments compared to the previous year. This decline was further reflected in the following year, with the interest coverage ratio dropping to 6.58 by December 31, 2024.

Overall, Century Communities Inc's interest coverage has shown fluctuations, with periods of improvement and slight declines. While the company has generally exhibited a strong ability to cover its interest expenses with its earnings, the recent downward trend in the ratio may warrant further analysis to ensure sustainable financial health and stability.