MYR Group Inc (MYRG)

Interest coverage ratio is a key financial metric used to assess a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company's stronger ability to meet interest payments.

Using the provided data for MYR Group Inc, the interest coverage ratio has shown a positive trend over the years. As of December 31, 2020, the interest coverage ratio was reported at 18.35, indicating that the company's operating income was 18.35 times higher than its interest expenses for that year.

The interest coverage ratio significantly improved to 64.18 as of December 31, 2021, reflecting a substantial increase in the company's ability to cover its interest obligations. This sharp increase suggests that MYR Group Inc experienced a significant growth in operating income relative to its interest expenses.

The trend continued to be favorable in the following years, although there was a slight decrease in the interest coverage ratio to 31.58 as of December 31, 2022. Despite this minor decline, the ratio remained at a healthy level, indicating the company's continuing ability to comfortably meet its interest payments.

As of December 31, 2023, the interest coverage ratio further decreased to 26.31, potentially signaling a moderate decrease in operating income relative to interest expenses. However, the ratio still remains at an acceptable level, suggesting that MYR Group Inc is capable of servicing its interest obligations.

The interest coverage ratio experienced a significant drop to 8.13 as of December 31, 2024, demonstrating a notable reduction in the company's ability to cover interest expenses with its operating income. This significant decrease may raise concerns about the company's financial health and ability to meet its interest obligations in the future.

Overall, while there have been fluctuations in MYR Group Inc's interest coverage ratio over the years, the trend has generally been positive, except for the substantial drop in 2024. It is important for investors and stakeholders to closely monitor the company's interest coverage ratio to assess its financial stability and ability to manage debt effectively.

Peer comparison

Dec 31, 2024