FTI Consulting Inc (FCN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 372,723 | 307,796 | 318,241 | 282,251 | 307,656 |
| Interest expense | US$ in thousands | 14,331 | 10,047 | 20,294 | 19,805 | 19,206 |
| Interest coverage | 26.01 | 30.64 | 15.68 | 14.25 | 16.02 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $372,723K ÷ $14,331K
= 26.01
FTI Consulting Inc.'s interest coverage ratio has displayed some fluctuation over the past five years. The interest coverage ratio indicates the firm's ability to meet its interest obligations from its operating income. A higher ratio suggests a stronger ability to cover interest expenses.
The interest coverage ratio for FTI Consulting Inc. was relatively high in 2023 at 41.39, indicating a substantial cushion to cover interest payments. This was a decrease from the previous year, where the ratio stood at 57.52, implying that there may have been a slight reduction in the firm's ability to cover interest expenses from operating income.
In 2021, the interest coverage ratio experienced a significant increase to 18.57 from 18.03 in 2020. This improvement suggests that the firm's ability to meet interest payments improved during that period.
Furthermore, in 2019, the interest coverage ratio was at 21.16, which indicates the company had a relatively strong ability to cover its interest expenses.
Overall, FTI Consulting Inc. has generally maintained a healthy interest coverage ratio over the past five years, although there have been some fluctuations. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023