NV5 Global Inc (NVEE)
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 | 46,895 | 53,787 | 48,346 | 56,904 | 61,180 | 57,204 | 60,453 | 62,615 | 66,184 | 74,763 | 75,390 | 71,342 | 68,343 | 56,626 | 51,914 | 44,324 | 44,151 | 40,956 | 34,542 | 33,177 |
| Interest expense (ttm) | US$ in thousands | 17,181 | 17,203 | 16,538 | 15,580 | 12,970 | 10,116 | 7,237 | 4,476 | 3,809 | 3,682 | 4,154 | 4,835 | 6,239 | 8,621 | 10,877 | 13,712 | 15,182 | 12,967 | 9,657 | 5,711 |
| Interest coverage | 2.73 | 3.13 | 2.92 | 3.65 | 4.72 | 5.65 | 8.35 | 13.99 | 17.38 | 20.30 | 18.15 | 14.76 | 10.95 | 6.57 | 4.77 | 3.23 | 2.91 | 3.16 | 3.58 | 5.81 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $46,895K ÷ $17,181K
= 2.73
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. The trend analysis of NV5 Global Inc's interest coverage ratio from March 2020 to December 2024 shows a fluctuating pattern.
Initially, the interest coverage ratio was at a relatively healthy level of 5.81 in March 2020 but started to decline over the next few quarters, reaching a low of 2.73 by December 2024. This downward trend signifies a potential deterioration in the company's ability to cover its interest expenses from its operating income.
Although there were some fluctuations throughout the period, there was a significant improvement in the interest coverage ratio from December 2021 to September 2022, where it rose from 10.95 to 20.30. This improvement indicates that the company was better positioned to meet its interest obligations during that period.
However, the ratio began declining again from March 2023 onwards, indicating a potential strain on the company's ability to service its debt in the near term.
Overall, the fluctuating trend in NV5 Global Inc's interest coverage ratio suggests varying levels of financial stability and raises concerns about the company's ability to cover its interest expenses consistently over the analyzed period. Further investigation into the company's financial health and debt management strategies may be warranted to better understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024