CoreCivic Inc (CXW)
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 | 159,378 | 168,783 | 261,176 | 181,645 | 143,023 |
| Interest expense | US$ in thousands | 67,415 | 72,960 | 84,974 | 85,542 | 83,299 |
| Interest coverage | 2.36 | 2.31 | 3.07 | 2.12 | 1.72 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $159,378K ÷ $67,415K
= 2.36
CoreCivic Inc's interest coverage ratio has shown an improving trend over the years. As of December 31, 2020, the interest coverage was 1.72, indicating that the company was generating just enough operating income to cover its interest expenses. However, by December 31, 2024, the interest coverage had increased to 2.36, reflecting a healthier financial position with a stronger ability to meet interest obligations.
The upward trend in the interest coverage ratio suggests that CoreCivic Inc's financial health has improved over the years, as the company's operating income has become more sufficient to cover its interest expenses. This indicates a reduced risk of default on debt obligations and a higher capacity to service debt. However, despite the improvement, the interest coverage ratio is still relatively low, indicating that the company should continue to monitor its financial position closely and work towards further strengthening its ability to meet interest payments.
Peer comparison
Dec 31, 2024