Fluor Corporation (FLR)
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 | 433,000 | 485,000 | 249,000 | 220,000 | 376,000 | -11,000 | 33,000 | -174,000 | -331,000 | -164,502 | -208,336 | -90,270 | -340,000 | -467,144 | -759,119 | -1,252,066 | -975,349 | -561,296 | -206,711 | 375,903 |
| Interest expense (ttm) | US$ in thousands | 59,000 | 62,000 | 62,000 | 59,000 | 59,000 | 57,000 | 80,000 | 84,000 | 90,000 | 100,092 | 78,742 | 77,449 | 72,000 | 56,304 | 59,638 | 62,807 | 64,886 | 75,503 | 80,757 | 78,664 |
| Interest coverage | 7.34 | 7.82 | 4.02 | 3.73 | 6.37 | -0.19 | 0.41 | -2.07 | -3.68 | -1.64 | -2.65 | -1.17 | -4.72 | -8.30 | -12.73 | -19.94 | -15.03 | -7.43 | -2.56 | 4.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $433,000K ÷ $59,000K
= 7.34
Fluor Corporation's interest coverage ratio, a measure of its ability to pay interest expenses on outstanding debt, showed significant improvement over the past two quarters. In Q2 2022, the interest coverage ratio was 5.23, indicating the company's earnings before interest and taxes (EBIT) were 5.23 times higher than its interest expenses. This ratio further increased to 32.37 in Q3 2022, reflecting a substantial enhancement in the company's ability to cover its interest obligations.
The absence of data for Q1 and Q4 of 2023 limits a direct comparison; however, the trend from Q2 to Q3 2022 suggests that Fluor Corporation has made positive strides in strengthening its interest coverage position. This improvement indicates a healthier financial position and reduced financial risk for the company. Further monitoring of the interest coverage ratio in future quarters will be essential to gauge the company's ongoing ability to meet its interest payment obligations.
Peer comparison
Dec 31, 2023