MYR Group Inc (MYRG)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 51,650 | 58,713 | 69,440 | 121,459 | 124,879 | 124,752 | 120,107 | 114,577 | 112,529 | 106,282 | 109,927 | 112,888 | 115,462 | 110,575 | 115,450 | 105,799 | 94,429 | 99,808 | 80,771 | 70,352 |
| Interest expense (ttm) | US$ in thousands | 6,525 | 6,191 | 5,494 | 5,407 | 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 |
| Interest coverage | 7.92 | 9.48 | 12.64 | 22.46 | 25.28 | 28.44 | 28.58 | 30.98 | 31.58 | 41.26 | 62.92 | 63.60 | 64.18 | 53.16 | 39.98 | 30.01 | 20.69 | 17.61 | 12.09 | 10.77 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $51,650K ÷ $6,525K
= 7.92
Based on the provided data, MYR Group Inc's interest coverage ratio has exhibited a generally positive trend from March 31, 2020, to December 31, 2022, showing a steady increase in the company's ability to cover interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio increased from 10.77 at the end of March 2020 to a peak of 64.18 at the end of December 2021, indicating a strong capacity to meet interest obligations.
However, starting from March 31, 2022, the interest coverage ratio began to decline, reaching 7.92 at the end of December 31, 2024. This decreasing trend may raise concerns about the company's ability to comfortably cover its interest expenses with its operating profits. A lower interest coverage ratio suggests that the company may be at an increased risk of default on its debt obligations if its earnings decline or interest rates rise significantly.
It is essential for stakeholders to monitor MYR Group Inc's interest coverage ratio closely in the future to assess the company's financial health and ensure its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024