Stericycle Inc (SRCL)
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 | 77,300 | 153,700 | 72,300 | 31,900 | -211,900 |
| Interest expense | US$ in thousands | 4,600 | 2,300 | 1,900 | 3,700 | 6,400 |
| Interest coverage | 16.80 | 66.83 | 38.05 | 8.62 | -33.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $77,300K ÷ $4,600K
= 16.80
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Stericycle Inc.'s interest coverage has shown some fluctuations over the past five years. In 2023, the interest coverage ratio improved to 1.90 from 1.83 in 2022, indicating that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses. However, it's essential to note that the ratio was below 1 in 2021, signifying that the company's EBIT was not enough to cover its interest obligations for that year. The ratios of 1.90 in 2023 and 1.90 in 2020 suggest that Stericycle managed to meet its interest payments comfortably in those years. Overall, the varying interest coverage ratios reflect fluctuations in Stericycle's earnings relative to its interest expenses, indicating the company's ability to service its debt over the given period.
Peer comparison
Dec 31, 2023