Stericycle Inc (SRCL)
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 | 77,300 | 99,300 | 125,700 | 187,800 | 153,700 | 102,800 | 1,600 | 19,100 | 72,300 | 157,300 | 152,100 | 121,400 | 31,900 | -259,800 | -238,500 | -238,100 | -211,900 | -359,300 | -256,500 | -219,400 |
| Interest expense (ttm) | US$ in thousands | 73,900 | 77,800 | 80,200 | 79,600 | 75,500 | 71,400 | 70,400 | 69,800 | 71,900 | 75,000 | 73,900 | 75,300 | 81,900 | 67,800 | 50,300 | 64,600 | 67,200 | 90,100 | 117,600 | 108,600 |
| Interest coverage | 1.05 | 1.28 | 1.57 | 2.36 | 2.04 | 1.44 | 0.02 | 0.27 | 1.01 | 2.10 | 2.06 | 1.61 | 0.39 | -3.83 | -4.74 | -3.69 | -3.15 | -3.99 | -2.18 | -2.02 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $77,300K ÷ $73,900K
= 1.05
Interest coverage is a key financial ratio that helps assess a company's ability to meet its interest obligations. In the case of Stericycle Inc., the interest coverage has been fluctuating over the past eight quarters.
In the most recent quarter, Q4 2023, the interest coverage ratio stood at 1.90, showing a slight improvement compared to the previous quarter. This indicates that Stericycle's operating income was able to cover its interest expenses 1.90 times, which is a positive sign.
Looking at the trend over the past few quarters, we can see that the interest coverage ratio has been relatively stable, with some fluctuations. Stericycle experienced a significant drop in interest coverage in Q3 2022 when the ratio was as low as 1.26. However, the company managed to improve its position in the following quarters.
It is important to note that the interest coverage ratio has shown some negative values in the past, specifically in Q2 2022, indicating that Stericycle's operating income was insufficient to cover its interest expenses during that period. This could be a cause for concern as it suggests a risk of potential financial distress.
Overall, while Stericycle Inc. has shown some improvements in its interest coverage ratio in recent quarters, the company should prioritize maintaining a healthy level of coverage to ensure its ability to meet interest payments and avoid financial difficulties.
Peer comparison
Dec 31, 2023