PulteGroup Inc (PHM)
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 | 4,006,360 | 3,449,740 | 3,439,840 | 2,510,350 | 1,732,940 |
| Interest expense | US$ in thousands | 479 | 469 | 284 | 502 | 4,248 |
| Interest coverage | 8,364.01 | 7,355.52 | 12,112.11 | 5,000.70 | 407.94 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,006,360K ÷ $479K
= 8,364.01
Based on the data provided for PulteGroup Inc's interest coverage ratio, we can observe a significant fluctuation over the years.
- As of December 31, 2020, the interest coverage ratio stood at a robust 407.94, indicating that the company's operating income was more than sufficient to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio soared to an impressive 5,000.70, reflecting a substantial increase in the company's ability to service its interest obligations.
- Moving on to December 31, 2022, the interest coverage ratio surged even higher to an extraordinary 12,112.11, underscoring the company's enhanced financial strength and capacity to meet its interest payments comfortably.
- However, there was a notable decrease in the interest coverage ratio by December 31, 2023, when it fell to 7,355.52, although still at a healthy level, indicating a slight reduction in the company's ability to cover its interest charges compared to the previous year.
- Finally, by December 31, 2024, the interest coverage ratio improved to 8,364.01, suggesting a recovery in the company's ability to service its interest expenses more effectively.
Overall, the trend in PulteGroup Inc's interest coverage ratio demonstrates strong financial health and a generally improving ability to meet its interest obligations over the years, despite some fluctuations.
Peer comparison
Dec 31, 2024