EMCOR Group Inc (EME)
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 | 1,381,604 | 1,245,659 | 1,116,820 | 980,176 | 874,637 | 768,525 | 684,945 | 627,298 | 573,788 | 534,887 | 522,097 | 517,639 | 534,425 | 530,521 | 529,334 | 273,134 | 262,028 | 246,224 | 225,331 | 467,783 |
| Interest expense (ttm) | US$ in thousands | 21,959 | 34,544 | 26,322 | 22,908 | 17,199 | 8,818 | 11,922 | 10,981 | 10,438 | 8,340 | 6,432 | 5,997 | 6,071 | 5,371 | 5,569 | 6,363 | 7,488 | 8,906 | 10,100 | 11,221 |
| Interest coverage | 62.92 | 36.06 | 42.43 | 42.79 | 50.85 | 87.15 | 57.45 | 57.13 | 54.97 | 64.14 | 81.17 | 86.32 | 88.03 | 98.78 | 95.05 | 42.93 | 34.99 | 27.65 | 22.31 | 41.69 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,381,604K ÷ $21,959K
= 62.92
EMCOR Group Inc's interest coverage ratio has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
From March 31, 2020, to June 30, 2021, EMCOR Group Inc's interest coverage ratio consistently remained above 20, indicating a strong ability to cover its interest expenses with operating income. The peak of 98.78 on September 30, 2021, suggests a robust financial position during that period.
However, there was a decline in the interest coverage ratio from June 30, 2022, to December 31, 2024, with values fluctuating between 36.06 and 62.92. This downward trend may indicate increased financial risk or a higher proportion of interest obligations relative to earnings during these periods.
Overall, while EMCOR Group Inc has generally maintained a healthy interest coverage ratio during the observed period, the fluctuations in the ratio suggest the need for continued monitoring of the company's financial performance and debt management strategies.
Peer comparison
Dec 31, 2024