FTI Consulting Inc (FCN)
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 | 357,722 | 372,694 | 307,796 | 318,241 | 295,359 |
| Interest expense | US$ in thousands | 6,951 | 14,331 | 10,047 | 20,294 | 20,217 |
| Interest coverage | 51.46 | 26.01 | 30.64 | 15.68 | 14.61 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $357,722K ÷ $6,951K
= 51.46
FTI Consulting Inc's interest coverage ratio has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently improved from 14.61 in December 2020 to 51.46 in December 2024. This signifies that the company's operating income is more than sufficient to cover its interest expenses, reflecting strong financial health and sound debt management. The substantial increase in the ratio over the period suggests improved profitability and efficiency in generating earnings relative to interest payments. Overall, FTI Consulting Inc's interest coverage ratio demonstrates a favorable financial position and the capability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024