Comfort Systems USA Inc (FIX)
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 | 694,257 | 620,371 | 558,153 | 463,314 | 398,575 | 361,264 | 311,684 | 279,005 | 248,842 | 226,744 | 211,782 | 199,282 | 196,169 | 191,527 | 185,053 | 201,662 | 189,206 | 182,299 | 178,687 | 153,547 |
| Interest expense (ttm) | US$ in thousands | 6,648 | 5,473 | 5,629 | 7,938 | 10,381 | 14,600 | 16,023 | 15,031 | 12,984 | 10,117 | 8,294 | 6,528 | 5,896 | 4,250 | 4,497 | 5,791 | 7,011 | 8,431 | 9,477 | 9,973 |
| Interest coverage | 104.43 | 113.35 | 99.16 | 58.37 | 38.39 | 24.74 | 19.45 | 18.56 | 19.17 | 22.41 | 25.53 | 30.53 | 33.27 | 45.07 | 41.15 | 34.82 | 26.99 | 21.62 | 18.85 | 15.40 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $694,257K ÷ $6,648K
= 104.43
Comfort Systems USA Inc's interest coverage ratio has been showing a generally increasing trend over the past few years, indicating improving ability to cover its interest expenses with operating income. The interest coverage ratio started at 15.40 on March 31, 2020, and notably increased to 113.35 on September 30, 2024. This significant improvement suggests that the company has been generating more than enough operating income to service its interest obligations.
However, there was a slight decline from the peak in September 2024 to 104.43 by December 31, 2024. This decrease may indicate a potential need for closer monitoring of the company's ability to cover interest expenses in the future.
Overall, the trend in Comfort Systems USA Inc's interest coverage ratio reflects a positive financial position in terms of meeting its interest obligations, but it is essential for stakeholders to continue assessing the company's performance and financial health.
Peer comparison
Dec 31, 2024