Installed Building Products Inc (IBP)
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 | 383,300 | 370,100 | 341,081 | 185,117 | 161,468 |
| Interest expense | US$ in thousands | 36,900 | 37,000 | 41,600 | 32,800 | 30,291 |
| Interest coverage | 10.39 | 10.00 | 8.20 | 5.64 | 5.33 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $383,300K ÷ $36,900K
= 10.39
Installed Building Products Inc's interest coverage has shown a generally positive trend over the past five years, increasing from 5.33 in December 31, 2020, to 10.39 in December 31, 2024. This indicates the company's ability to meet its interest obligations from operating profits has improved significantly. The steady growth in interest coverage reflects the company's strengthening financial position and reduced financial risk related to debt repayment. Overall, the consistent improvement in interest coverage suggests Installed Building Products Inc is effectively managing its interest expenses and generating sufficient earnings to cover its interest payments comfortably.
Peer comparison
Dec 31, 2024