Green Brick Partners Inc (GRBK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 355,205 | 359,082 | 227,790 | 122,470 |
| Interest expense | US$ in thousands | — | — | 17,653 | 17,769 | 19,537 |
| Interest coverage | — | — | 20.34 | 12.82 | 6.27 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. Looking at the data provided for Green Brick Partners Inc, we see a favorable trend in the interest coverage ratio over the years.
In December 2020, the interest coverage ratio stood at 6.27, indicating that the company generated enough operating income to cover its interest expenses approximately 6 times. By December 2021, this ratio improved significantly to 12.82, signaling a stronger ability to meet interest payments from operating earnings.
The trend continued to show improvement in the following years, with the interest coverage ratio reaching 20.34 by December 2022. This substantial increase suggests that the company's profitability and cash flows have improved, further enhancing its capacity to cover interest costs comfortably.
It is worth noting that the data shows a missing value for December 31, 2023, and December 31, 2024. This could indicate either an error in reporting or a lack of available data for those periods. As a result, a comprehensive analysis for those specific years cannot be provided.
Overall, the increasing trend in Green Brick Partners Inc's interest coverage ratio from 2020 to 2022 reflects a positive financial performance, indicating a healthier financial position and reduced risk of being unable to meet interest obligations with operating income.
Peer comparison
Dec 31, 2024