Geo Group Inc (GEO)
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 | 309,789 | 334,739 | 335,957 | 348,192 | 361,290 | 377,853 | 392,385 | 395,079 | 383,945 | 350,739 | 326,637 | 311,438 | 295,542 | 284,363 | 275,077 | 258,715 | 249,247 | 250,710 | 264,136 | 281,798 |
| Interest expense (ttm) | US$ in thousands | 190,624 | 200,648 | 210,927 | 215,329 | 218,292 | 218,247 | 209,007 | 187,186 | 164,549 | 144,421 | 130,409 | 129,237 | 129,460 | 127,721 | 125,945 | 124,502 | 126,838 | 130,706 | 136,602 | 144,924 |
| Interest coverage | 1.63 | 1.67 | 1.59 | 1.62 | 1.66 | 1.73 | 1.88 | 2.11 | 2.33 | 2.43 | 2.50 | 2.41 | 2.28 | 2.23 | 2.18 | 2.08 | 1.97 | 1.92 | 1.93 | 1.94 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $309,789K ÷ $190,624K
= 1.63
Geo Group Inc's interest coverage ratio has shown fluctuations over the past few years, starting at around 1.94 in March 2020 and gradually increasing to a peak of 2.50 in June 2022. This ratio indicates the company's ability to cover its interest expenses with its operating income.
However, the interest coverage ratio began to decline from September 2022 onwards, reaching a low of 1.59 in June 2024. A decreasing trend in the interest coverage ratio could suggest that Geo Group Inc may be facing challenges in meeting its interest obligations with its current level of operating income.
It is essential for investors and creditors to closely monitor Geo Group Inc's interest coverage ratio to ensure the company's financial health and ability to handle its debt obligations. A sustained low interest coverage ratio could signal potential financial distress for the company.
Peer comparison
Dec 31, 2024