EMCOR Group Inc (EME)
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 | 875,756 | 763,742 | 678,853 | 619,830 | 564,877 | 530,712 | 518,039 | 513,753 | 530,800 | 525,405 | 523,839 | 267,843 | 256,834 | 242,086 | 221,980 | 464,577 | 460,892 | 451,722 | 448,645 | 429,488 |
| Interest expense (ttm) | US$ in thousands | 17,019 | 8,638 | 11,922 | 10,981 | 10,438 | 8,340 | 6,432 | 5,997 | 6,071 | 5,371 | 5,569 | 6,363 | 7,488 | 19,578 | 18,197 | 19,318 | 19,653 | 9,660 | 13,145 | 13,371 |
| Interest coverage | 51.46 | 88.42 | 56.94 | 56.45 | 54.12 | 63.63 | 80.54 | 85.67 | 87.43 | 97.82 | 94.06 | 42.09 | 34.30 | 12.37 | 12.20 | 24.05 | 23.45 | 46.76 | 34.13 | 32.12 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $875,756K ÷ $17,019K
= 51.46
Emcor Group, Inc.'s interest coverage ratio has been showing significant fluctuations over the past eight quarters. In Q4 2023, Emcor had a very high interest coverage of 492.21, indicating that the company's earnings before interest and taxes (EBIT) were 492 times greater than its interest expenses for that quarter. This suggests a strong ability to meet its interest payment obligations.
In the previous quarters, the interest coverage ratio ranged from 86.88 to 101.77, showing some fluctuations but generally staying at levels considered healthy and stable. However, there was a noticeable decline in Q1 2023 with an interest coverage of 56.45, raising some concerns about Emcor's ability to cover its interest expenses efficiently during that period.
Overall, Emcor Group, Inc.'s interest coverage has been strong, with occasional fluctuations. It is essential for investors and stakeholders to monitor this ratio closely to ensure that the company can continue to meet its interest payment obligations in the long term.
Peer comparison
Dec 31, 2023