Century Communities Inc (CCS)

Interest coverage

		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	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,370,172	3,311,638	3,109,049	2,956,636	2,792,751	2,795,332	3,052,662	3,366,537	3,623,059	3,674,719	3,529,526	3,425,218	3,436,468	3,240,626	3,085,651	2,843,345	2,472,886	2,289,425	2,111,370	1,979,674
Interest expense (ttm)	US$ in thousands	0	14,469	28,703	42,734	248,643	256,558	245,120	237,332	33,167	10,783	7,987	1,744	0	0	0	0	0	1	2	3
Interest coverage		—	228.88	108.32	69.19	11.23	10.90	12.45	14.18	109.24	340.79	441.91	1,964.00	—	—	—	—	—	2,289,425.00	1,055,685.00	659,891.33

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,370,172K ÷ $0K
= —

Based on the provided data, the interest coverage ratio for Century Communities Inc fluctuated significantly over the period from March 31, 2020, to December 31, 2024.

- The interest coverage ratio improved from 659,891.33 on March 31, 2020, to 2,289,425.00 on September 30, 2020, indicating a strong ability to cover interest expenses with operating profits during that period.
- However, the ratio dropped to 1,964.00 on March 31, 2022, and continued to decline gradually.
- There was a significant decrease in the interest coverage ratio to 10.90 on September 30, 2023, showing a potential difficulty in meeting interest obligations from operating income.
- The ratio fluctuated around relatively low levels for the following quarters until reaching 228.88 on September 30, 2024.

The decreasing trend in the interest coverage ratio after a period of strong performance may raise concerns about the company's ability to cover interest expenses with its operating profits. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and capability to meet its debt obligations.