Group 1 Automotive Inc (GPI)
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 | 917,700 | 947,200 | 979,300 | 1,011,700 | 1,005,300 | 1,019,500 | 1,020,000 | 1,024,000 | 1,064,900 | 1,057,400 | 1,026,800 | 1,005,900 | 881,500 | 801,700 | 746,500 | 593,900 | 511,000 | 467,100 | 363,243 | 356,783 |
| Interest expense (ttm) | US$ in thousands | 249,800 | 234,800 | 206,900 | 190,300 | 172,800 | 148,400 | 131,500 | 114,400 | 104,800 | 96,400 | 88,300 | 86,400 | 85,100 | 83,900 | 88,600 | 92,400 | 102,000 | 113,600 | 125,200 | 132,804 |
| Interest coverage | 3.67 | 4.03 | 4.73 | 5.32 | 5.82 | 6.87 | 7.76 | 8.95 | 10.16 | 10.97 | 11.63 | 11.64 | 10.36 | 9.56 | 8.43 | 6.43 | 5.01 | 4.11 | 2.90 | 2.69 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $917,700K ÷ $249,800K
= 3.67
Group 1 Automotive Inc's interest coverage ratio has shown a consistent improvement from 2.69 in March 2020 to 3.67 in December 2024. This indicates the company's ability to meet its interest obligations from its earnings. The trend reflects a strengthening financial position and suggests that the company has been generating sufficient operating income to cover its interest expenses over the years. However, the recent slight decline in the interest coverage ratio from the peak of 11.64 in March 2022 to 3.67 in December 2024 may warrant further monitoring to ensure that the company maintains a healthy level of earnings relative to its interest obligations.
Peer comparison
Dec 31, 2024