Mister Car Wash Inc (MCW)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 178,145 | 179,828 | 179,684 | 181,367 | 187,719 | 196,127 | 192,739 | -2,705 |
| Interest expense (ttm) | US$ in thousands | 75,104 | 70,010 | 61,010 | 51,477 | 41,895 | 33,036 | 28,653 | 33,631 |
| Interest coverage | 2.37 | 2.57 | 2.95 | 3.52 | 4.48 | 5.94 | 6.73 | -0.08 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $178,145K ÷ $75,104K
= 2.37
The interest coverage ratio for Mister Car Wash Inc has shown a declining trend over the past five quarters, decreasing from 4.46 in Q4 2022 to 2.37 in Q4 2023. This indicates that the company's ability to meet its interest obligations with its earnings has weakened over time. A lower interest coverage ratio may suggest a higher financial risk for the company, as it indicates a reduced ability to cover interest expenses from operating profits. Management should closely monitor this trend and assess the company's overall financial health and leverage levels to ensure sustainable operations and debt servicing capabilities.
Peer comparison
Dec 31, 2023