Comfort Systems USA Inc (FIX)
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 | 671,611 | 416,086 | 249,542 | 195,970 | 199,583 |
| Interest expense | US$ in thousands | 5,050 | 10,281 | 13,684 | 5,696 | 7,011 |
| Interest coverage | 132.99 | 40.47 | 18.24 | 34.40 | 28.47 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $671,611K ÷ $5,050K
= 132.99
Comfort Systems USA Inc's interest coverage ratio, which measures the company's ability to meet its interest obligations, has shown a positive trend over the years. In December 31, 2020, the interest coverage ratio was 28.47, indicating that the company was generating ample earnings to cover its interest expenses almost 29 times over.
By the end of December 31, 2021, the interest coverage ratio improved further to 34.40, suggesting a strengthening of the company's financial position and ability to service its debt obligations comfortably. However, in December 31, 2022, there was a decline in the interest coverage ratio to 18.24, which may raise some concerns about the company's ability to cover its interest costs adequately.
Nevertheless, the trend reversed in December 31, 2023, with the interest coverage ratio rising significantly to 40.47, signaling a robust improvement in the company's ability to meet its interest payments. The most recent data available for December 31, 2024, shows a substantial increase in the interest coverage ratio to 132.99, indicating a very strong financial position and high capacity to cover interest expenses.
In conclusion, Comfort Systems USA Inc's interest coverage has displayed fluctuations over the years, but overall, the company appears to have managed its interest obligations effectively, with a notable improvement in recent years, suggesting a sound financial footing.
Peer comparison
Dec 31, 2024