Republic Services Inc (RSG)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,699,300 | 2,227,090 | 1,887,800 | 1,495,900 | 1,687,300 |
| Interest expense | US$ in thousands | 508,200 | 395,600 | 314,600 | 355,600 | 392,000 |
| Interest coverage | 5.31 | 5.63 | 6.00 | 4.21 | 4.30 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,699,300K ÷ $508,200K
= 5.31
Republic Services, Inc.'s interest coverage ratio has been relatively stable over the past five years. The company's ability to cover its interest expenses improved from 2019 to 2021, with the ratio increasing from 4.34 to 6.10 before experiencing a slight decline in 2022 and 2023. Generally, a higher interest coverage ratio indicates that the company is in a better position to meet its interest obligations from its earnings. Republic Services, Inc. has maintained a healthy interest coverage ratio above 5 for the past five years, suggesting a solid financial standing and the ability to comfortably cover its interest expenses.
Peer comparison
Dec 31, 2023