Rollins Inc (ROL)

Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses.

Looking at the historical trend of Rollins, Inc.'s interest coverage ratio, there has been significant fluctuation over the past five years. In 2023, the interest coverage ratio stands at 30.88, indicating that the company's operating income is 30.88 times its interest expense for the year. This represents a decrease from the exceptionally high ratio of 187.03 in 2022 and 530.11 in 2021.

While the interest coverage ratio in 2023 has decreased from the previous years, it still remains at a healthy level, suggesting that Rollins, Inc. has sufficient earnings to continue meeting its interest obligations. The company's ability to generate operating income relative to its interest expenses has shown variability over the years, with the ratio fluctuating considerably. This trend implies that the company's interest coverage may be subject to fluctuations in its financial performance. It is essential for investors and stakeholders to monitor these changes closely to assess Rollins, Inc.'s ability to manage its debt and interest obligations effectively.

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Dec 31, 2023