Republic Services Inc (RSG)
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 | 2,699,150 | 2,573,019 | 2,452,274 | 2,320,074 | 2,227,074 | 2,097,629 | 2,032,905 | 1,965,570 | 1,887,770 | 1,809,865 | 1,668,965 | 1,555,200 | 1,496,000 | 1,596,600 | 1,657,000 | 1,693,600 | 1,687,300 | 1,761,700 | 1,730,700 | 1,711,300 |
| Interest expense (ttm) | US$ in thousands | 508,100 | 491,600 | 469,200 | 438,800 | 395,600 | 362,400 | 335,300 | 319,700 | 314,600 | 313,100 | 323,900 | 337,300 | 355,600 | 372,500 | 381,600 | 388,300 | 392,000 | 393,400 | 391,400 | 389,400 |
| Interest coverage | 5.31 | 5.23 | 5.23 | 5.29 | 5.63 | 5.79 | 6.06 | 6.15 | 6.00 | 5.78 | 5.15 | 4.61 | 4.21 | 4.29 | 4.34 | 4.36 | 4.30 | 4.48 | 4.42 | 4.39 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,699,150K ÷ $508,100K
= 5.31
Republic Services, Inc. has maintained a relatively stable interest coverage ratio over the past eight quarters, ranging from 5.32 to 6.27. The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt with its operating income.
The consistent range of values above 5 suggests that Republic Services, Inc. generates sufficient operating income to comfortably cover its interest expenses. A higher interest coverage ratio is generally preferred as it indicates a lower financial risk related to debt servicing.
While the slight decline in the interest coverage ratio from Q1 2022 to Q2 2023 is notable, the overall trend remains relatively stable. Investors and creditors may view this consistent performance positively, as it demonstrates the company's ongoing ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023