NV5 Global Inc (NVEE)
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 | 61,180 | 66,182 | 68,344 | 44,149 | 31,207 |
| Interest expense | US$ in thousands | 12,970 | 3,808 | 6,239 | 15,181 | 2,275 |
| Interest coverage | 4.72 | 17.38 | 10.95 | 2.91 | 13.72 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $61,180K ÷ $12,970K
= 4.72
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt.
Looking at the trend in NV5 Global Inc's interest coverage ratio over the past five years, we observe fluctuations in the company's ability to cover its interest payments.
The interest coverage ratio was 4.72 in 2023, indicating that the company generated operating income nearly 4.72 times larger than its interest expenses for the year. This reflects a decline from the previous year's significantly higher interest coverage ratio of 17.38 in 2022.
In 2021, the interest coverage ratio was 10.95, showing a healthy ability to cover interest payments. This ratio was lower in the prior year, 2020, at 2.91, indicating a decreased ability to cover interest expenses.
The highest interest coverage ratio in the provided data was 13.72 in 2019, demonstrating a strong ability to cover interest expenses.
Overall, NV5 Global Inc's interest coverage ratio has varied over the past five years, with some years showing stronger ability to cover interest payments compared to others. It is important for investors and creditors to closely monitor this ratio to assess the company's financial health and debt repayment capability.
Peer comparison
Dec 31, 2023