Rollins Inc (ROL)
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 | 583,226 | 564,070 | 532,350 | 512,238 | 493,388 | 472,508 | 453,951 | 452,828 | 447,636 | 1,033,741 | 879,106 | 700,753 | 485,811 | 295,264 | 276,464 | 268,115 | 292,562 | 21,356 | 29,701 | 46,213 |
| Interest expense (ttm) | US$ in thousands | 19,055 | 11,141 | 6,440 | 2,535 | 2,638 | 2,798 | 2,174 | 1,800 | 1,838 | 1,925 | 2,569 | 3,523 | 5,082 | 6,957 | 108,767 | 108,702 | 107,173 | 106,140 | 4,155 | 3,301 |
| Interest coverage | 30.61 | 50.63 | 82.66 | 202.07 | 187.03 | 168.87 | 208.81 | 251.57 | 243.55 | 537.01 | 342.20 | 198.91 | 95.59 | 42.44 | 2.54 | 2.47 | 2.73 | 0.20 | 7.15 | 14.00 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $583,226K ÷ $19,055K
= 30.61
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. In the case of Rollins, Inc., the interest coverage ratio has shown a consistent and strong trend over the past eight quarters.
The company's interest coverage ratio has ranged from 30.88 to 559.93 during this period, indicating a high level of financial strength and the ability to easily cover its interest expenses. The ratio peaked in Q1 2022 at 559.93, suggesting that Rollins generated significantly more operating income than needed to cover its interest payments during that quarter.
Overall, the trend of increasing interest coverage ratios over the quarters reflects the company's improving financial health and robust operating performance. This indicates that Rollins has generated ample operating income to comfortably cover its interest expenses, emphasizing financial stability and sound debt management practices.
Peer comparison
Dec 31, 2023