NV5 Global Inc (NVEE)
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 | 61,180 | 57,203 | 60,452 | 62,614 | 66,183 | 74,763 | 75,390 | 71,342 | 68,343 | 56,625 | 51,913 | 44,323 | 44,150 | 40,956 | 34,542 | 33,177 | 31,206 | 34,892 | 37,042 | 36,795 |
| Interest expense (ttm) | US$ in thousands | 12,970 | 10,115 | 7,236 | 4,475 | 3,808 | 3,681 | 4,153 | 4,834 | 6,238 | 8,621 | 10,877 | 13,712 | 15,182 | 12,967 | 9,657 | 5,711 | 2,274 | 1,483 | 1,513 | 1,706 |
| Interest coverage | 4.72 | 5.66 | 8.35 | 13.99 | 17.38 | 20.31 | 18.15 | 14.76 | 10.96 | 6.57 | 4.77 | 3.23 | 2.91 | 3.16 | 3.58 | 5.81 | 13.72 | 23.53 | 24.48 | 21.57 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $61,180K ÷ $12,970K
= 4.72
The interest coverage ratio for NV5 Global Inc has shown fluctuations over the periods analyzed. The ratio indicates the company's ability to cover its interest expenses with its operating income. A higher ratio generally suggests that the company is more capable of meeting its interest obligations.
Looking at the trend, the interest coverage ratio has generally been strong, ranging from a low of 2.91 to a high of 24.48. The ratio saw a significant improvement from March 2020 to December 2020, indicating better ability to cover interest expenses. However, there was a slight decline in the ratio in the following quarters up to June 2021 before picking up again.
It is noteworthy that NV5 Global Inc's interest coverage ratio has consistently been above 1, which implies that the company is generating sufficient operating income to cover its interest payments. Investors and creditors typically look for interest coverage ratios above 1.5 to ensure the company's financial health.
Overall, the interest coverage ratio of NV5 Global Inc reflects a generally healthy financial position with the ability to meet interest obligations, although some fluctuations are observed over time, suggesting periodic variations in operating performance and financial leverage.
Peer comparison
Dec 31, 2023