Eagle Materials Inc (EXP)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 660,194 | 682,103 | 665,232 | 647,943 | 623,764 | 586,669 | 564,306 | 520,785 | 505,967 | 497,676 | 474,611 | 459,418 | 473,810 | 442,516 | 235,678 | 212,521 | 133,145 | -38,035 | 136,183 | 129,560 |
| Interest expense (ttm) | US$ in thousands | 42,257 | 42,900 | 41,704 | 40,080 | 35,171 | 30,824 | 27,543 | 31,231 | 30,873 | 33,354 | 37,063 | 37,351 | 44,420 | 45,852 | 46,035 | 43,616 | 38,421 | 36,157 | 33,908 | 30,588 |
| Interest coverage | 15.62 | 15.90 | 15.95 | 16.17 | 17.74 | 19.03 | 20.49 | 16.68 | 16.39 | 14.92 | 12.81 | 12.30 | 10.67 | 9.65 | 5.12 | 4.87 | 3.47 | -1.05 | 4.02 | 4.24 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $660,194K ÷ $42,257K
= 15.62
Eagle Materials Inc's interest coverage ratio has shown fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
From March 2024 to September 2021, the interest coverage ratio has generally been comfortably above 10, indicating that Eagle Materials Inc has consistently generated sufficient operating income to cover its interest expenses. This signifies a strong financial position and the ability to meet its debt obligations.
The interest coverage ratio peaked at 20.49 in September 2022 and gradually declined to 15.62 in March 2024. Although the ratio has decreased, it still remains relatively high, indicating that the company's operating income continues to comfortably cover its interest payments.
However, it's worth noting the lower interest coverage ratios reported in 2019 and early 2020, which were below 5, indicating a tighter financial position during that period. This could have been a result of increased debt levels or lower operating income during those periods.
Overall, the trend of Eagle Materials Inc's interest coverage ratio suggests a generally healthy financial position with the ability to meet its interest obligations, though vigilance is necessary to monitor any significant changes in the future.