Robert Half International Inc (RHI)
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 | 336,770 | 380,413 | 420,245 | 475,277 | 555,493 | 640,075 | 733,838 | 827,757 | 890,614 | 914,484 | 918,781 | 882,839 | 805,825 | 712,941 | 587,591 | 441,251 | 421,758 | 445,264 | 505,513 | 606,666 |
| Interest expense (ttm) | US$ in thousands | 0 | 59,407 | 73,682 | 79,002 | 138,409 | 82,232 | 70,303 | 65,701 | 6,460 | 26,270 | 25,683 | 25,116 | 24,995 | 2,034 | 477 | 431 | 40,762 | 42,040 | 43,068 | 44,005 |
| Interest coverage | — | 6.40 | 5.70 | 6.02 | 4.01 | 7.78 | 10.44 | 12.60 | 137.87 | 34.81 | 35.77 | 35.15 | 32.24 | 350.51 | 1,231.85 | 1,023.78 | 10.35 | 10.59 | 11.74 | 13.79 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $336,770K ÷ $0K
= —
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
Based on the data provided for Robert Half International Inc, the interest coverage ratio has shown fluctuations over the years.
- From March 31, 2020, to June 30, 2021, the interest coverage ratio ranged from 13.79 to 1231.85, indicating a healthy ability to cover interest expenses.
- However, there was a substantial decrease in the ratio in the following quarters, dropping to 4.01 by December 31, 2023, which suggests a potential strain on the company's ability to meet interest payments.
- The ratio recovered slightly to 6.40 by September 30, 2024, but it still remains below the levels seen in the earlier periods.
It is important for stakeholders to closely monitor Robert Half International Inc's interest coverage ratio to ensure the company can continue servicing its debt obligations effectively. A declining trend in the ratio may indicate financial stress or increased risk for the company. Further analysis of the company's financial health and debt management practices may be necessary to better understand the reasons behind the fluctuations in the interest coverage ratio.
Peer comparison
Dec 31, 2024