MYR Group Inc (MYRG)
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 | 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 129,943 | 129,672 | 124,752 | 120,529 | 117,767 | 110,505 | 114,307 | 115,539 | 118,109 | 114,088 | 107,991 | 97,898 | 85,948 | 80,092 | 71,379 | 62,553 | 58,143 | 53,799 | 49,421 | 48,962 |
| Interest expense (ttm) | US$ in thousands | 4,939 | 4,387 | 4,202 | 3,698 | 3,563 | 2,576 | 1,747 | 1,775 | 1,799 | 2,080 | 2,888 | 3,525 | 4,563 | 5,668 | 6,680 | 6,533 | 6,225 | 5,632 | 4,521 | 4,136 |
| Interest coverage | 26.31 | 29.56 | 29.69 | 32.59 | 33.05 | 42.90 | 65.43 | 65.09 | 65.65 | 54.85 | 37.39 | 27.77 | 18.84 | 14.13 | 10.69 | 9.57 | 9.34 | 9.55 | 10.93 | 11.84 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $129,943K ÷ $4,939K
= 26.31
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. In the case of MYR Group Inc, the interest coverage ratio has remained consistently high over the past eight quarters, ranging from 30.83 to 66.02.
The higher the interest coverage ratio, the better the company is able to cover its interest payments. MYR Group Inc's interest coverage ratio indicates that the company has a strong ability to meet its interest expenses using its operating income.
The upward trend in the interest coverage ratio from Q4 2022 to Q2 2022 indicates an improving ability to cover interest expenses. However, in the recent quarters, the ratio has slightly decreased from its peak in Q2 2022 but still remains at a healthy level. This suggests that MYR Group Inc is efficiently managing its interest obligations and generating sufficient operating income to cover its interest expenses.
Peer comparison
Dec 31, 2023