Comfort Systems USA Inc (FIX)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 398,475 | 361,132 | 311,852 | 279,273 | 249,210 | 227,144 | 211,982 | 199,583 | 196,470 | 199,371 | 196,589 | 209,566 | 199,925 | 191,860 | 183,245 | 160,282 | 161,059 | 149,074 | 150,877 | 160,801 |
| Interest expense (ttm) | US$ in thousands | 10,281 | 14,468 | 16,191 | 15,299 | 13,352 | 10,517 | 8,494 | 6,828 | 6,196 | 5,924 | 6,071 | 7,265 | 8,385 | 9,330 | 10,376 | 10,872 | 9,317 | 8,000 | 6,373 | 4,059 |
| Interest coverage | 38.76 | 24.96 | 19.26 | 18.25 | 18.66 | 21.60 | 24.96 | 29.23 | 31.71 | 33.65 | 32.38 | 28.85 | 23.84 | 20.56 | 17.66 | 14.74 | 17.29 | 18.63 | 23.67 | 39.62 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $398,475K ÷ $10,281K
= 38.76
Comfort Systems USA, Inc. has exhibited a strong interest coverage ratio over the quarters, reflecting its ability to comfortably meet its interest obligations through its operating profits. The interest coverage ratio has been consistently high, with a peak value of 77.34 in Q4 2023 and a low of 18.96 in Q4 2022. This indicates that the company's operating income is sufficiently higher than its interest expense in all quarters, providing a margin of safety in meeting debt obligations. The trend suggests a generally improving or stable ability to cover interest expenses, which is a positive signal for creditors and investors. Overall, the interest coverage ratio demonstrates the company's sound financial health and capacity to service its debt obligations effectively.
Peer comparison
Dec 31, 2023