Republic Services Inc (RSG)
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 | 2,971,000 | 2,721,200 | 2,218,300 | 2,116,600 | 1,841,300 |
| Interest expense | US$ in thousands | 539,000 | 508,200 | 395,600 | 314,600 | 355,600 |
| Interest coverage | 5.51 | 5.35 | 5.61 | 6.73 | 5.18 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,971,000K ÷ $539,000K
= 5.51
Based on the provided data, Republic Services Inc's interest coverage ratio has exhibited some fluctuations over the years. As of December 31, 2020, the interest coverage ratio stood at 5.18, indicating that the company generated 5.18 times the earnings needed to cover its interest expenses.
Subsequently, the interest coverage ratio improved to 6.73 as of December 31, 2021, suggesting a stronger ability to meet interest obligations. However, in the following years, the ratio slightly declined to 5.61 as of December 31, 2022, 5.35 as of December 31, 2023, and 5.51 as of December 31, 2024.
Overall, the interest coverage ratios above 5 reflect that Republic Services Inc has generally been able to comfortably cover its interest payments with its operating profits. However, the downward trend in recent years may indicate a need for monitoring to ensure the company's ongoing ability to service its debt obligations.
Peer comparison
Dec 31, 2024