Geo Group Inc (GEO)
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 | 361,016 | 386,700 | 396,003 | 406,083 | 399,262 | 374,350 | 353,860 | 327,085 | 329,607 | 293,343 | 292,298 | 284,749 | 260,332 | 287,376 | 300,505 | 314,357 | 334,275 | 334,131 | 327,420 | 319,523 |
| Interest expense (ttm) | US$ in thousands | 218,292 | 218,248 | 209,008 | 187,187 | 164,550 | 144,421 | 130,409 | 129,237 | 129,460 | 127,720 | 125,944 | 124,501 | 126,837 | 130,706 | 136,602 | 144,924 | 151,024 | 155,755 | 157,101 | 154,514 |
| Interest coverage | 1.65 | 1.77 | 1.89 | 2.17 | 2.43 | 2.59 | 2.71 | 2.53 | 2.55 | 2.30 | 2.32 | 2.29 | 2.05 | 2.20 | 2.20 | 2.17 | 2.21 | 2.15 | 2.08 | 2.07 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $361,016K ÷ $218,292K
= 1.65
Geo Group, Inc.'s interest coverage has shown a declining trend over the past eight quarters. The interest coverage ratio, which measures the company's ability to meet interest payments on its debt, has decreased from 3.10 in Q2 2022 to 1.70 in Q4 2023. This trend indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A declining interest coverage ratio may raise concerns about the company's financial health and ability to service its debt obligations. It is important for the company to closely monitor its interest coverage ratio and take proactive measures to improve it, such as increasing profitability or reducing debt levels.
Peer comparison
Dec 31, 2023