Clean Harbors Inc (CLH)
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 | 670,232 | 680,557 | 642,629 | 616,959 | 612,439 | 592,543 | 647,262 | 668,609 | 634,747 | 589,548 | 485,294 | 384,125 | 347,887 | 327,430 | 306,476 | 256,695 | 251,336 | 241,902 | 238,390 | 251,218 |
| Interest expense (ttm) | US$ in thousands | 11,300 | 14,951 | 13,351 | 11,851 | 10,551 | 8,711 | 7,911 | 7,211 | 6,411 | 26,210 | 43,947 | 61,878 | 79,875 | 74,497 | 74,503 | 75,194 | 76,582 | 58,486 | 40,110 | 20,979 |
| Interest coverage | 59.31 | 45.52 | 48.13 | 52.06 | 58.05 | 68.02 | 81.82 | 92.72 | 99.01 | 22.49 | 11.04 | 6.21 | 4.36 | 4.40 | 4.11 | 3.41 | 3.28 | 4.14 | 5.94 | 11.97 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $670,232K ÷ $11,300K
= 59.31
Clean Harbors Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures the company's ability to cover its interest expenses with operating income.
As of December 31, 2024, Clean Harbors Inc's interest coverage ratio stood at 59.31, indicating that the company generated 59.31 times more income than needed to cover its interest expenses for that period. This is a positive sign, suggesting that the company has a strong ability to meet its debt obligations using its operating income.
Looking at the trend over the past few quarters, we observe a generally declining trend in the interest coverage ratio from a high of 99.01 in December 2022 to 59.31 in December 2024. This decline may raise some concerns about the company's ability to cover its interest expenses in the future, although the current ratio remains at a healthy level.
It is important for stakeholders to monitor this ratio closely as a significant drop in the interest coverage ratio could indicate financial distress or an increased risk of default on debt payments. Overall, while the current interest coverage ratio of Clean Harbors Inc is satisfactory, ongoing monitoring of this metric will be crucial for assessing the company's financial health.