Green Brick Partners Inc (GRBK)

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	350,687	441,396	419,702	374,231	355,205	332,321	330,260	363,652	359,082	364,928	332,487	272,380	227,790	187,557	168,639	129,871	122,470	110,187	91,142	84,375
Interest expense (ttm)	US$ in thousands	0	83,379	83,379	83,379	166,758	88,541	88,956	93,392	15,936	14,380	13,965	9,529	3,606	0	0	0	0	0	0	0
Interest coverage		—	5.29	5.03	4.49	2.13	3.75	3.71	3.89	22.53	25.38	23.81	28.58	63.17	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $350,687K ÷ $0K
= —

Green Brick Partners Inc's interest coverage ratio has fluctuated over the periods provided. As of December 31, 2021, the interest coverage ratio was strong at 63.17, indicating the company's ability to cover its interest expenses over this period. However, the interest coverage ratio decreased in the subsequent periods, reaching a low of 2.13 as of December 31, 2023.

This significant decline in the interest coverage ratio raises concerns about the company's ability to meet its interest obligations from its operating income. The ratio improved slightly in the following periods but remained relatively low compared to previous years.

Investors and creditors may view a declining interest coverage ratio as a red flag, as it suggests a potential increase in financial risk and may impact the company's creditworthiness. Green Brick Partners Inc should closely monitor its interest coverage ratio and take appropriate actions to strengthen its ability to cover interest expenses in the future.