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

Company name
Symbol
Interest coverage
Clean Harbors Inc
CLH
58.05
Stericycle Inc
SRCL
1.05