Installed Building Products Inc (IBP)
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 | 370,100 | 374,712 | 365,925 | 365,085 | 344,881 | 290,938 | 252,111 | 214,127 | 188,317 | 184,418 | 174,933 | 163,453 | 161,468 | 151,485 | 143,351 | 131,875 | 120,709 | 112,518 | 101,441 | 97,869 |
| Interest expense (ttm) | US$ in thousands | 37,000 | 39,121 | 40,071 | 40,644 | 41,574 | 41,730 | 38,749 | 35,868 | 32,842 | 30,393 | 30,270 | 30,507 | 30,291 | 31,000 | 31,894 | 29,786 | 28,104 | 25,266 | 22,090 | 22,132 |
| Interest coverage | 10.00 | 9.58 | 9.13 | 8.98 | 8.30 | 6.97 | 6.51 | 5.97 | 5.73 | 6.07 | 5.78 | 5.36 | 5.33 | 4.89 | 4.49 | 4.43 | 4.30 | 4.45 | 4.59 | 4.42 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $370,100K ÷ $37,000K
= 10.00
Installed Building Products Inc's interest coverage has been consistently strong over the past eight quarters, indicating the company's ability to comfortably meet its interest obligations from its operating profits. The interest coverage ratio has been increasing steadily from 5.96 in Q1 2022 to 9.98 in Q4 2023, reflecting a positive trend in the company's financial performance. This improvement suggests that Installed Building Products Inc has been generating sufficient earnings to cover its interest expenses, indicating a lower risk of default on its debt obligations. The company's ability to maintain a high interest coverage ratio demonstrates its financial stability and sound management of debt, which is a positive signal for investors and creditors.
Peer comparison
Dec 31, 2023