Maximus Inc (MMS)

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	488,499	475,867	392,516	327,527	294,794	310,194	306,363	319,146	325,898	279,551	356,300	393,678	398,946	415,514	370,846	296,064	289,121	282,122	279,567	324,089
Interest expense (ttm)	US$ in thousands	82,440	82,935	83,406	84,039	84,138	79,729	69,494	57,933	45,965	40,562	32,858	24,176	14,744	4,543	2,072	1,781	2,059	1,908	1,712	2,816
Interest coverage		5.93	5.74	4.71	3.90	3.50	3.89	4.41	5.51	7.09	6.89	10.84	16.28	27.06	91.46	178.98	166.23	140.42	147.86	163.30	115.09

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $488,499K ÷ $82,440K
= 5.93

The interest coverage ratio for Maximus Inc has shown fluctuations over the periods analyzed. The ratio measures the company's ability to cover its interest expenses with its operating income.

From December 2019 to September 2020, the interest coverage ratio remained relatively stable, ranging between 115.09 and 163.30, indicating a comfortable ability to cover interest expenses.

However, there was a significant increase in interest coverage from September 2020 to December 2021, with ratios soaring from 163.30 to 27.06, suggesting a substantial improvement in the company's ability to service its debt obligations.

Subsequently, there was a progressive decline in the interest coverage ratio from March 2022 to September 2024, dropping from 10.84 to 5.93. This decreasing trend may indicate increased concerns about the company's ability to cover its interest payments with its operating income.

Overall, while the interest coverage ratios have fluctuated, Maximus Inc has generally maintained a solid ability to meet its interest obligations, with occasional periods of heightened performance and moments of potential concern. As such, continued monitoring and analysis of the company's financial performance will be important to assess its debt repayment capabilities.