Exponent Inc (EXPO)
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 | 92,304 | 110,698 | 118,784 | 112,915 | 111,322 | 114,963 | 117,843 | 133,245 | 140,842 | 142,185 | 137,491 | 121,586 | 108,927 | 103,283 | 91,571 | 71,319 | 83,249 | 86,865 | 89,642 | 105,345 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 0 | 0 | 6,418 | 7,680 | 8,318 | 8,339 | 1,942 | 692 | 66 | 74 | 262 | 566 | 859 | 1,705 | 13,429 | 18,569 | 20,291 | 23,444 |
| Interest coverage | — | — | — | — | 17.35 | 14.97 | 14.17 | 15.98 | 72.52 | 205.47 | 2,083.20 | 1,643.05 | 415.75 | 182.48 | 106.60 | 41.83 | 6.20 | 4.68 | 4.42 | 4.49 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,304K ÷ $0K
= —
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Looking at the data provided for Exponent Inc, we observe fluctuations in the interest coverage ratio over the quarters.
From March 31, 2020, to March 31, 2021, Exponent Inc's interest coverage ratio experienced a significant increase, indicating a stronger ability to cover interest expenses. The ratio remained robust in the subsequent quarters of June 30, 2021, and September 30, 2021, reaching exceptionally high levels by December 31, 2021.
However, the interest coverage ratio saw a substantial decline from March 31, 2022, where it spiked to 1,643.05, to December 31, 2022, and continued to decrease steadily until March 31, 2024, where it eventually reached a level where it was no longer calculable.
This trend suggests that Exponent Inc initially had a strong ability to cover its interest expenses, but this ability deteriorated significantly in the later periods, potentially indicating increased financial risk or a change in the company's financial structure. It would be crucial for stakeholders to monitor this ratio closely in future periods to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2024