Jacobs Solutions Inc. (J)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 928,979 | 998,637 | 1,000,365 | 1,002,923 | 1,030,067 | 1,061,464 | 1,080,875 | 961,667 | 905,189 | 859,446 | 841,589 | 643,500 | 688,091 | 459,048 | 389,678 | 598,568 | 535,973 | 612,585 | 508,163 | 443,066 |
| Interest expense (ttm) | US$ in thousands | 169,058 | 177,016 | 175,002 | 171,383 | 168,108 | 157,172 | 139,514 | 120,896 | 100,245 | 87,476 | 81,358 | 74,827 | 72,714 | 66,831 | 65,013 | 64,703 | 62,207 | 58,304 | 59,089 | 73,358 |
| Interest coverage | 5.50 | 5.64 | 5.72 | 5.85 | 6.13 | 6.75 | 7.75 | 7.95 | 9.03 | 9.82 | 10.34 | 8.60 | 9.46 | 6.87 | 5.99 | 9.25 | 8.62 | 10.51 | 8.60 | 6.04 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $928,979K ÷ $169,058K
= 5.50
Jacob Solutions Inc.'s interest coverage has shown a generally positive trend over the past few quarters. The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt, with higher ratios indicating better ability to meet interest obligations.
From September 2020 to September 2022, there was a consistent upward trend in interest coverage from 6.04 to 9.03, indicating an improvement in the company's ability to cover interest payments. This suggests that Jacobs Solutions Inc. was more capable of meeting its interest obligations during this period.
There was a peak in interest coverage at 10.34 in March 2022, followed by a slight decline in the subsequent quarters. However, the ratio remained above 5.00, reflecting a healthy interest coverage ratio throughout the following quarters.
Overall, the interest coverage ratios above 5.00 indicate that Jacob Solutions Inc. has been able to comfortably meet its interest obligations, with a positive trend in recent periods suggesting financial stability and the ability to handle its debt burden effectively.
Peer comparison
Sep 30, 2024