MasTec Inc (MTZ)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 444,229 | 151,701 | 155,314 | 483,488 | 730,606,000 |
| Interest expense | US$ in thousands | 193,266 | 234,405 | 112,255 | 53,413 | 59,629 |
| Interest coverage | 2.30 | 0.65 | 1.38 | 9.05 | 12,252.53 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $444,229K ÷ $193,266K
= 2.30
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. Looking at MasTec Inc's interest coverage ratio over the years, we observe a significant decline from 12,252.53 in December 2020 to 9.05 in December 2021. This drop indicates that the company's ability to cover its interest expenses decreased in 2021 compared to the previous year.
In the following years, the interest coverage ratio continued to deteriorate, reaching 1.38 in December 2022, 0.65 in December 2023, and slightly improving to 2.30 in December 2024. These decreasing values suggest that MasTec Inc faced challenges in generating enough operating income to cover its interest payments, potentially raising concerns about its financial health and ability to service its debt obligations.
Overall, the declining trend in MasTec Inc's interest coverage ratio indicates a weakening ability to meet interest expenses over the years, highlighting the importance of monitoring the company's financial performance and debt management strategies.
Peer comparison
Dec 31, 2024