Taylor Morn Home (TMHC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,155,750 | 1,020,340 | 1,391,490 | 844,306 | 316,177 |
| Interest expense | US$ in thousands | 2,890 | 3,315 | 2,260 | 539 | -1,852 |
| Interest coverage | 399.91 | 307.79 | 615.70 | 1,566.43 | — |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,155,750K ÷ $2,890K
= 399.91
The interest coverage ratio of Taylor Morn Home has exhibited significant fluctuations over the years. In 2021, the interest coverage ratio was robust at 1,566.43, indicating that the company generated ample operating income to cover its interest expenses. However, this ratio decreased in subsequent years, notably to 615.70 in 2022, 307.79 in 2023, and then increased again to 399.91 in 2024. The declining trend from 2021 to 2023 raises concerns about the company's ability to meet its interest obligations from its operating earnings. It is essential for Taylor Morn Home to closely monitor and manage its interest coverage ratio to ensure financial stability and sustainability.
Peer comparison
Dec 31, 2024