PulteGroup Inc (PHM)
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 | 16,232,981 | 3,346,221 | 3,711,562 | 3,616,265 | 3,449,736 | 3,666,676 | 3,630,584 | 3,542,089 | 3,439,839 | 3,131,991 | 2,941,166 | 2,716,139 | 2,510,347 | 2,178,291 | 2,042,166 | 1,862,564 | 1,732,943 | 1,645,065 | 1,526,966 | 1,387,879 |
| Interest expense (ttm) | US$ in thousands | 479 | 474 | 474 | 477 | 469 | 415 | 360 | 305 | 284 | 331 | 381 | 454 | 503 | 614 | 724 | 3,586 | 4,248 | 4,169 | 4,091 | 1,237 |
| Interest coverage | 33,889.31 | 7,059.54 | 7,830.30 | 7,581.27 | 7,355.51 | 8,835.36 | 10,084.96 | 11,613.41 | 12,112.11 | 9,462.21 | 7,719.60 | 5,982.69 | 4,990.75 | 3,547.71 | 2,820.67 | 519.40 | 407.94 | 394.59 | 373.25 | 1,121.97 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $16,232,981K ÷ $479K
= 33,889.31
Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing PulteGroup Inc's interest coverage ratio over the past few years, we can see a significant improvement in its ability to cover interest expenses. As of December 31, 2024, the interest coverage ratio stands at 33,889.31, reflecting a substantial increase compared to the ratios in the past quarters.
The trend in PulteGroup Inc's interest coverage ratio shows a consistent improvement since March 31, 2020, where the ratio was 1,121.97. The company's interest coverage has been increasing steadily, indicating a strengthening financial position and the ability to comfortably meet its interest payments.
The latest interest coverage ratio of 33,889.31 as of December 31, 2024, is a positive indicator of PulteGroup Inc's financial health and its capacity to service its debt. This significant increase in the interest coverage ratio suggests that the company has ample earnings to cover its interest expenses multiple times over, highlighting a strong financial performance.
Peer comparison
Dec 31, 2024