Gibraltar Industries Inc (ROCK)
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 | 143,023 | 150,729 | 130,102 | 96,988 | 107,190 |
| Interest expense | US$ in thousands | 6,171 | 3,002 | 4,047 | 1,639 | 703 |
| Interest coverage | 23.18 | 50.21 | 32.15 | 59.18 | 152.48 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $143,023K ÷ $6,171K
= 23.18
The interest coverage ratio 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 Gibraltar Industries Inc's interest coverage ratio over the past five years, we observed a strong ratio of 152.48 on December 31, 2020. This indicates that the company had a significant cushion to cover its interest payments at that time.
However, there was a notable decline in the interest coverage ratio to 59.18 on December 31, 2021. This decrease may suggest increased financial risk or potentially higher interest expenses relative to operating income in that year.
The trend continued with a further decrease in the interest coverage ratio to 32.15 on December 31, 2022, signaling a continued strain on the company's ability to cover interest costs.
On December 31, 2023, there was a slight improvement in the interest coverage ratio to 50.21, indicating a partial recovery in the company's ability to meet its interest obligations.
However, by December 31, 2024, the interest coverage ratio dropped to 23.18, indicating a significant decline and potentially heightened financial risk for Gibraltar Industries Inc.
Overall, the analysis of Gibraltar Industries Inc's interest coverage ratios over the past five years shows fluctuations, suggesting varying levels of financial strength and risk management within the company. It would be important for stakeholders to monitor this ratio closely to assess the company's ability to service its debt obligations effectively.
Peer comparison
Dec 31, 2024