NV5 Global Inc (NVEE)
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 | 43,434 | 61,180 | 66,182 | 68,344 | 44,149 |
| Interest expense | US$ in thousands | 17,181 | 12,970 | 3,808 | 6,239 | 15,181 |
| Interest coverage | 2.53 | 4.72 | 17.38 | 10.95 | 2.91 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $43,434K ÷ $17,181K
= 2.53
Based on the provided data, NV5 Global Inc's interest coverage has shown varying trends over the past five years. In December 2020, the interest coverage ratio was at 2.91, indicating that the company generated operating income that covered its interest expense nearly three times over.
Significantly, by December 2021, the interest coverage ratio improved to 10.95, suggesting an enhanced ability to meet its interest obligations comfortably. This trend continued into the following years, with the interest coverage ratios for December 2022 at 17.38.
However, there was a slight decline in interest coverage by December 2023 to 4.72, which could indicate a dip in operating income relative to the interest expenses incurred. The trend became more concerning by December 2024, where the interest coverage ratio dropped to 2.53, raising potential liquidity and solvency concerns.
Overall, the company's interest coverage has exhibited fluctuations over the years, with improvements in certain periods but showing some weaknesses in others, particularly towards the end of the period under consideration. It may be advisable for investors and stakeholders to closely monitor NV5 Global Inc's financial performance to ensure the company can meet its interest obligations effectively.
Peer comparison
Dec 31, 2024