FTI Consulting Inc (FCN)
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 | 354,232 | 400,641 | 405,968 | 390,585 | 357,754 | 323,477 | 315,877 | 291,403 | 303,878 | 283,147 | 289,145 | 308,890 | 319,153 | 338,166 | 324,631 | 308,452 | 296,985 | 274,247 | 279,185 | 302,088 |
| Interest expense (ttm) | US$ in thousands | 7,860 | 11,040 | 13,408 | 13,695 | 16,257 | 21,440 | 19,344 | 18,186 | 16,894 | 12,945 | 15,640 | 19,398 | 21,206 | 25,003 | 28,421 | 27,372 | 27,436 | 27,024 | 23,365 | 23,001 |
| Interest coverage | 45.07 | 36.29 | 30.28 | 28.52 | 22.01 | 15.09 | 16.33 | 16.02 | 17.99 | 21.87 | 18.49 | 15.92 | 15.05 | 13.53 | 11.42 | 11.27 | 10.82 | 10.15 | 11.95 | 13.13 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $354,232K ÷ $7,860K
= 45.07
FTI Consulting Inc's interest coverage ratio, a measure of the company's ability to meet its interest obligations from its operating income, has shown a generally improving trend from March 2020 to December 2024. The interest coverage ratio started at 13.13 in March 2020 and steadily increased to 45.07 by December 2024.
This indicates that FTI Consulting's earnings were 45.07 times greater than its interest expense in December 2024, which signifies a strong ability to meet its interest payments. The consistent improvement in the interest coverage ratio over the period reflects positively on the company's financial health and its ability to manage its debt obligations effectively.
A higher interest coverage ratio is typically preferred by investors and creditors as it suggests a lower risk of default on interest payments. Overall, the upward trend in FTI Consulting's interest coverage ratio indicates a positive financial performance and an increasing capacity to cover its interest expenses.
Peer comparison
Dec 31, 2024