KBR Inc (KBR)
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 | 655,000 | 590,000 | 449,000 | -38,000 | -55,000 | -3,000 | 89,000 | 543,000 | 369,000 | 365,000 | 338,000 | 101,000 | 218,000 | 128,000 | 120,000 | 195,000 | 28,000 | 75,000 | 91,000 | 197,000 |
| Interest expense (ttm) | US$ in thousands | 144,000 | 130,000 | 123,000 | 120,000 | 115,000 | 108,000 | 101,000 | 93,000 | 87,000 | 85,000 | 82,000 | 81,000 | 80,000 | 71,000 | 69,000 | 68,000 | 72,000 | 83,000 | 90,000 | 97,000 |
| Interest coverage | 4.55 | 4.54 | 3.65 | -0.32 | -0.48 | -0.03 | 0.88 | 5.84 | 4.24 | 4.29 | 4.12 | 1.25 | 2.72 | 1.80 | 1.74 | 2.87 | 0.39 | 0.90 | 1.01 | 2.03 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $655,000K ÷ $144,000K
= 4.55
The interest coverage ratio of KBR Inc has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to meet its interest obligations with its operating income.
From March 31, 2020, to December 31, 2021, the interest coverage ratio declined from 2.03 to 0.39, indicating a decrease in the company's ability to cover interest expenses. However, starting from March 31, 2022, there was an improvement in the ratio, reaching a peak of 5.84 on March 31, 2023, signifying a significant increase in the company's ability to cover interest payments.
The subsequent quarters of June 30, 2023, and September 30, 2023, showed a sharp decline in the interest coverage ratio, falling into negative territory (-0.03 and -0.48, respectively). This suggests that the company's operating income was insufficient to cover its interest expenses during these periods.
However, KBR Inc managed to improve its interest coverage ratio in the following quarters, with ratios of 3.65 on June 30, 2024, and 4.54 on September 30, 2024, indicating a recovery in its ability to handle interest payments. The ratio remained stable at 4.55 on December 31, 2024, showing consistency in covering its interest obligations.
Overall, the trend in KBR Inc's interest coverage ratio reflects some periods of vulnerability in meeting interest expenses but also demonstrates the company's ability to strengthen its financial position and improve its ability to cover interest payments over time.
Peer comparison
Dec 31, 2024