Fluor Corporation (FLR)
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 | 506,000 | 275,000 | 376,000 | 439,000 | 535,000 | 611,000 | 396,000 | 308,000 | 226,000 | 223,318 | 313,060 | 239,460 | 211,291 | 115,864 | 130,623 | 196,462 | 241,080 | 345,751 | 329,954 | -418,654 |
| Interest expense (ttm) | US$ in thousands | 46,000 | 48,000 | 51,000 | 56,000 | 59,000 | 62,000 | 62,000 | 59,000 | 59,000 | 77,481 | 79,481 | 81,698 | 86,422 | 71,044 | 73,367 | 75,764 | 73,363 | 71,874 | 72,535 | 73,798 |
| Interest coverage | 11.00 | 5.73 | 7.37 | 7.84 | 9.07 | 9.85 | 6.39 | 5.22 | 3.83 | 2.88 | 3.94 | 2.93 | 2.44 | 1.63 | 1.78 | 2.59 | 3.29 | 4.81 | 4.55 | -5.67 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $506,000K ÷ $46,000K
= 11.00
The interest coverage ratio of Fluor Corporation fluctuated over the periods provided. In March 2020, the ratio was negative at -5.67, indicating the company's operating income was insufficient to cover its interest expenses. However, starting from June 2020, the interest coverage improved, reaching a high of 11.00 in December 2024.
The upward trend in the interest coverage ratio from mid-2020 to the end of 2024 suggests that Fluor Corporation was better able to meet its interest obligations with its operating income during these periods. A higher interest coverage ratio indicates a company's ability to comfortably cover its interest payments and suggests a lower risk of default.
Overall, the improving trend in Fluor Corporation's interest coverage ratio over the analyzed periods is a positive sign, indicating a strengthening financial position in terms of its ability to meet its interest obligations.
Peer comparison
Dec 31, 2024