Rollins Inc (ROL)
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 | 657,224 | 583,226 | 493,388 | 447,636 | 376,088 |
| Interest expense | US$ in thousands | 27,677 | 19,055 | 2,638 | 830 | 5,082 |
| Interest coverage | 23.75 | 30.61 | 187.03 | 539.32 | 74.00 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $657,224K ÷ $27,677K
= 23.75
The interest coverage ratio for Rollins Inc has shown fluctuations over the years. In 2020, the ratio was 74.00, indicating that the company generated 74 times more operating income than what it needed to cover its interest expenses. This improved significantly to 539.32 in 2021, suggesting a strong ability to meet interest obligations.
However, there was a notable decline in 2022 with the interest coverage ratio falling to 187.03, although it still remained at a healthy level. The following year, in 2023, the ratio dropped further to 30.61, indicating a decrease in the company's ability to cover interest expenses.
By the end of 2024, the interest coverage ratio decreased to 23.75, suggesting that Rollins Inc may be facing challenges in generating sufficient operating income to meet its interest obligations. Overall, it is important for the company to closely monitor its interest coverage ratio to ensure the sustainability of its financial structure.
Peer comparison
Dec 31, 2024