Everus Construction Group Inc (ECG)

Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. Everus Construction Group Inc's interest coverage has shown a declining trend over the years based on the provided data.

As of December 31, 2021, the interest coverage ratio was 41.66, indicating that the company's operating income was 41.66 times higher than its interest expenses for that year. This strong ratio suggests a healthy ability to meet interest obligations.

By December 31, 2022, the interest coverage ratio decreased to 26.13, reflecting a reduction in the company's ability to cover its interest expenses. Although still above 1 (the minimum threshold indicating the ability to pay interest), the decreasing trend raises concern about the company's ability to service its debt.

The ratio further decreased to 6.61 by December 31, 2023, indicating a significant decline in Everus Construction Group Inc's ability to cover its interest payments. This lower ratio suggests that the company's operating income may no longer be sufficient to comfortably meet its interest obligations.

By December 31, 2024, the interest coverage ratio dropped to 0.00, indicating that the company's operating income was not sufficient to cover its interest expenses. A ratio of 0.00 signals a critical situation where the company may struggle to meet its interest payments from its operating income alone.

In conclusion, Everus Construction Group Inc's interest coverage has deteriorated significantly over the years, raising concerns about its ability to manage its debt efficiently and meet interest obligations in the future. Management should closely monitor and address this trend to ensure the company's financial stability.

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Dec 31, 2024