Quanta Services Inc (PWR)

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 1,150,869 1,086,209 950,732 825,188 807,795 681,763 672,556 685,738 685,773 721,374 712,608 657,104 609,996 591,482 556,386 525,050 634,406 611,390 579,084 617,870
Interest expense (ttm) US$ in thousands 186,913 174,843 160,878 141,328 124,363 112,989 96,682 81,152 68,899 54,147 47,937 43,482 45,013 52,533 59,853 67,020 66,890 59,836 50,686 44,043
Interest coverage 6.16 6.21 5.91 5.84 6.50 6.03 6.96 8.45 9.95 13.32 14.87 15.11 13.55 11.26 9.30 7.83 9.48 10.22 11.42 14.03

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,150,869K ÷ $186,913K
= 6.16

Quanta Services, Inc.'s interest coverage ratio has shown relatively stable performance over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.

The interest coverage ratio for Quanta Services, Inc. ranged from a low of 6.18 in Q2 2023 to a high of 8.79 in Q1 2022. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses. Quanta Services, Inc. has maintained a healthy interest coverage ratio above 6 for the past two years, indicating that the company has a comfortable margin of safety to meet its interest payments.

The company's interest coverage ratio peaked in Q1 2022 at 8.79 and has since declined but remained within a relatively narrow range between 6.18 and 6.51. While the slight decrease in the interest coverage ratio may signal a slightly lower ability to cover interest expenses, the overall trend shows that Quanta Services, Inc. has maintained a robust financial position with strong interest coverage capabilities.


Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
Quanta Services Inc
PWR
6.16
Comfort Systems USA Inc
FIX
38.76
EMCOR Group Inc
EME
51.46