MYR Group Inc (MYRG)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 129,943 | 117,767 | 118,109 | 85,948 | 58,143 |
| Interest expense | US$ in thousands | 4,939 | 3,563 | 1,799 | 4,563 | 6,225 |
| Interest coverage | 26.31 | 33.05 | 65.65 | 18.84 | 9.34 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $129,943K ÷ $4,939K
= 26.31
MYR Group Inc's interest coverage has exhibited significant fluctuation over the past five years. The interest coverage ratio, which measures the company's ability to pay interest expenses on its outstanding debt, experienced a notable increase from 8.62 in 2019 to 66.78 in 2021, indicating a substantial improvement in the company's ability to cover its interest obligations. However, there was a decrease in interest coverage to 18.39 in 2020, which rebounded to 33.33 in 2022, and then further increased to 30.83 in 2023.
Overall, MYR Group Inc's interest coverage ratio has generally remained at healthy levels over the years, with some fluctuation. The company's ability to cover its interest expenses improved significantly in 2021 but subsequently saw some minor fluctuations in the following years. This suggests that MYR Group Inc has been managing its debt obligations effectively, but investors and creditors should continue to monitor the trend in interest coverage to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023