Equifax Inc (EFX)
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 | 1,039,600 | 1,001,400 | 1,004,800 | 975,700 | 959,200 | 912,000 | 925,300 | 978,900 | 1,112,600 | 1,171,600 | 1,205,200 | 1,210,800 | 1,173,000 | 1,103,700 | 1,007,700 | 862,500 | 692,700 | 682,300 | 597,600 | 547,400 |
| Interest expense (ttm) | US$ in thousands | 229,000 | 233,600 | 240,100 | 243,500 | 241,400 | 235,600 | 219,900 | 200,800 | 182,900 | 166,900 | 154,800 | 148,100 | 145,600 | 144,000 | 146,400 | 148,100 | 141,600 | 134,000 | 124,600 | 115,600 |
| Interest coverage | 4.54 | 4.29 | 4.18 | 4.01 | 3.97 | 3.87 | 4.21 | 4.88 | 6.08 | 7.02 | 7.79 | 8.18 | 8.06 | 7.66 | 6.88 | 5.82 | 4.89 | 5.09 | 4.80 | 4.74 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,039,600K ÷ $229,000K
= 4.54
The interest coverage ratio measures a company's ability to cover its interest expense with its operating income. A higher ratio indicates better coverage and lower risk of default on interest payments.
Analyzing Equifax Inc's interest coverage over the past few years, we can see a generally positive trend. The ratio has shown gradual improvement from 4.74 in March 2020 to 4.54 by December 2024. The company's ability to cover its interest payments has been increasing, reaching a peak of 8.18 in March 2022. However, there was a slight decline in the ratio in the following quarters, with the ratio hovering around 4.00-4.50 range in the most recent quarters.
Overall, Equifax Inc's interest coverage ratio demonstrates a solid performance, indicating its ability to meet interest obligations comfortably. It is essential to monitor this ratio closely to ensure the company remains financially healthy and can continue to meet its debt obligations without issue.