CoreCivic Inc (CXW)
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 | 168,694 | 166,503 | 242,443 | 241,412 | 250,294 | 258,736 | 204,666 | 213,787 | 171,645 | 105,010 | 93,006 | 89,862 | 141,842 | 214,121 | 237,937 | 266,671 | 281,564 | 279,962 | 273,286 | 264,044 |
| Interest expense (ttm) | US$ in thousands | 72,960 | 74,898 | 77,805 | 81,205 | 84,974 | 88,620 | 88,480 | 90,034 | 85,542 | 81,875 | 81,415 | 79,189 | 83,299 | 85,055 | 85,837 | 85,503 | 84,401 | 85,218 | 84,777 | 83,153 |
| Interest coverage | 2.31 | 2.22 | 3.12 | 2.97 | 2.95 | 2.92 | 2.31 | 2.37 | 2.01 | 1.28 | 1.14 | 1.13 | 1.70 | 2.52 | 2.77 | 3.12 | 3.34 | 3.29 | 3.22 | 3.18 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $168,694K ÷ $72,960K
= 2.31
Based on the data provided, CoreCivic Inc's interest coverage ratio has been relatively stable over the last eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.
CoreCivic Inc's interest coverage has ranged from a low of 2.07 in Q4 2022 to a high of 2.67 in Q1 2022. This indicates that the company's operating income can cover its interest expenses more than twice over during most quarters.
The trend in the interest coverage ratio shows a slight decline from Q1 2022 to Q2 2023, with a low point in Q4 2022. However, the ratio remains above 2 in all quarters, indicating that CoreCivic Inc has had a comfortable buffer to meet its interest obligations.
Overall, CoreCivic Inc's interest coverage ratio demonstrates a consistent ability to cover its interest payments with its operating income, providing a measure of financial stability and solvency in managing its debt obligations.
Peer comparison
Dec 31, 2023