Comfort Systems USA Inc (FIX)
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 | 398,475 | 249,210 | 196,470 | 199,925 | 161,059 |
| Interest expense | US$ in thousands | 10,281 | 13,352 | 6,196 | 8,385 | 9,317 |
| Interest coverage | 38.76 | 18.66 | 31.71 | 23.84 | 17.29 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $398,475K ÷ $10,281K
= 38.76
Comfort Systems USA, Inc.'s interest coverage ratio has shown a positive trend over the last five years, indicating the company's ability to cover its interest expenses with its earnings. The interest coverage ratio has notably improved from 17.81 in 2019 to 77.34 in 2023, reflecting a substantial enhancement in the company's ability to meet its interest obligations.
The significant increase in the interest coverage ratio suggests that Comfort Systems USA, Inc. has generated ample earnings to comfortably cover its interest expenses, providing a cushion against financial risk. This improvement may be indicative of enhanced operational efficiency, increased profitability, or effective cost management strategies implemented by the company.
Moreover, the consistently high interest coverage ratios over the years demonstrate the company's financial stability and ability to withstand economic fluctuations. Investors and creditors may view this as a positive sign of Comfort Systems USA, Inc.'s financial health and capability to honor its debt obligations.
Peer comparison
Dec 31, 2023