CoreCivic Inc (CXW)
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 | 159,378 | 172,922 | 164,157 | 156,742 | 168,783 | 166,531 | 242,471 | 241,440 | 250,276 | 261,136 | 207,066 | 216,187 | 174,045 | 112,151 | 100,147 | 97,003 | 150,164 | 214,250 | 238,426 | 267,418 |
| Interest expense (ttm) | US$ in thousands | 67,415 | 69,376 | 71,264 | 72,422 | 72,960 | 74,898 | 77,805 | 83,837 | 87,606 | 91,252 | 91,112 | 90,034 | 88,042 | 84,375 | 83,915 | 81,689 | 83,299 | 85,055 | 85,837 | 85,503 |
| Interest coverage | 2.36 | 2.49 | 2.30 | 2.16 | 2.31 | 2.22 | 3.12 | 2.88 | 2.86 | 2.86 | 2.27 | 2.40 | 1.98 | 1.33 | 1.19 | 1.19 | 1.80 | 2.52 | 2.78 | 3.13 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $159,378K ÷ $67,415K
= 2.36
CoreCivic Inc's interest coverage ratio has exhibited fluctuations over the time period analyzed. The interest coverage ratio measures the company's ability to meet its interest expenses with its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest payments.
From March 31, 2020, to June 30, 2021, CoreCivic Inc's interest coverage ratio declined from 3.13 to 1.19, indicating a weakening ability to cover interest expenses. This downward trend suggests that the company may have been experiencing financial difficulties during this period.
However, from September 30, 2021, to June 30, 2023, the interest coverage ratio improved, reaching a peak of 3.12 on June 30, 2023. This increase indicates a stronger ability to cover interest payments, potentially reflecting improved financial performance during this period.
Subsequently, from September 30, 2023, to December 31, 2024, the interest coverage ratio fluctuated in a narrower range between 2.16 and 2.49. Overall, while the company's interest coverage ratio has shown both improvements and declines, it generally stayed above the critical threshold of 1, suggesting that CoreCivic Inc has been able to meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2024