Republic Services Inc (RSG)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,005,500 | 2,958,000 | 2,911,600 | 2,826,800 | 2,745,300 | 2,602,800 | 2,541,000 | 2,380,100 | 2,294,300 | 2,158,100 | 2,056,400 | 2,022,900 | 1,945,600 | 1,885,400 | 1,801,700 | 1,697,300 | 1,629,700 | 1,730,200 | 1,693,300 | 1,699,800 |
| Interest expense (ttm) | US$ in thousands | 539,000 | 545,300 | 534,700 | 530,800 | 518,200 | 491,600 | 469,200 | 438,800 | 395,600 | 362,400 | 335,300 | 319,700 | 314,600 | 313,000 | 323,800 | 337,000 | 355,200 | 372,200 | 381,300 | 388,200 |
| Interest coverage | 5.58 | 5.42 | 5.45 | 5.33 | 5.30 | 5.29 | 5.42 | 5.42 | 5.80 | 5.96 | 6.13 | 6.33 | 6.18 | 6.02 | 5.56 | 5.04 | 4.59 | 4.65 | 4.44 | 4.38 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,005,500K ÷ $539,000K
= 5.58
Republic Services Inc has shown a consistent trend in its interest coverage ratio over the reporting periods provided. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to December 31, 2024, the interest coverage has increased steadily from 4.38 to 5.58. This indicates that Republic Services Inc has been able to generate enough operating income to cover its interest expenses with a comfortable margin.
Overall, the increasing trend in the interest coverage ratio is a positive sign for investors and creditors, as it suggests that the company's financial health is improving, and it has a lower risk of defaulting on its debt obligations. However, it is essential to continue monitoring this ratio in future periods to ensure the company's ability to manage its debt effectively.
Peer comparison
Dec 31, 2024