Exponent Inc (EXPO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 119,557 | 111,322 | 140,842 | 108,927 | 83,249 |
| Interest expense | US$ in thousands | — | — | 2,096 | 23,397 | 20,558 |
| Interest coverage | — | — | 67.20 | 4.66 | 4.05 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $119,557K ÷ $—K
= —
Interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. Looking at the data for Exponent Inc, we observe a fluctuation in the interest coverage ratio over the years.
In December 31, 2020, the interest coverage ratio was 4.05, indicating that Exponent Inc's operating income was able to cover its interest expenses approximately 4 times. This suggests a moderate level of financial health.
By December 31, 2021, the interest coverage ratio improved to 4.66, signaling a slightly stronger ability to cover interest payments from operating income.
The most significant change came in December 31, 2022, where the interest coverage ratio spiked to 67.20. This significant increase suggests a substantial improvement in the company's ability to cover its interest expenses, potentially due to a significant increase in operating income or a decrease in interest expenses.
The absence of data for December 31, 2023, and December 31, 2024, makes it challenging to assess the trend effectively for those years.
In summary, Exponent Inc's interest coverage ratio has shown varying levels over the years, with a notable improvement in 2022. It will be important to monitor future financial statements to understand the sustainability and consistency of this trend.
Peer comparison
Dec 31, 2024