Clean Harbors Inc (CLH)
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 | 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 | 229,456 | 218,634 | 204,012 | 195,317 |
| Interest expense (ttm) | US$ in thousands | 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 | 1,094 | 21,369 | 21,002 | 20,711 |
| Interest coverage | 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 | 209.74 | 10.23 | 9.71 | 9.43 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $612,439K ÷ $10,551K
= 58.05
The interest coverage ratio measures Clean Harbors, Inc.'s ability to meet its interest obligations on outstanding debt. Looking at the trend over the past eight quarters, we observe a consistent and healthy interest coverage ratio ranging from 4.53 to 6.47. This indicates that the company's operating income is sufficient to cover its interest expenses comfortably.
A ratio above 1 indicates that the company is generating enough operating income to cover its interest payments, with higher ratios suggesting a stronger ability to cover these obligations. Clean Harbors' interest coverage ratios consistently exceeding 5 demonstrate that the company has a robust ability to meet its interest expenses and suggests a low risk of financial distress due to interest payments.
Overall, the trend of Clean Harbors, Inc.'s interest coverage ratios reflects a stable financial position with a strong capacity to service its debt obligations through its operational earnings.
Peer comparison
Dec 31, 2023