Taylor Morn Home (TMHC)
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 | 1,020,341 | 1,164,068 | 1,335,814 | 1,409,265 | 1,391,488 | 1,355,127 | 1,175,251 | 948,202 | 844,306 | 628,487 | 555,333 | 474,670 | 316,177 | 253,769 | 196,475 | 224,276 | 323,183 | 302,521 | 312,400 | 281,973 |
| Interest expense (ttm) | US$ in thousands | 3,315 | 3,260 | 3,460 | 2,937 | 2,260 | 1,758 | 847 | 612 | 539 | 473 | 15 | -1,328 | -1,852 | -1,122 | -277 | 838 | 1,173 | 252 | 536 | 1,420 |
| Interest coverage | 307.80 | 357.08 | 386.07 | 479.83 | 615.70 | 770.83 | 1,387.55 | 1,549.35 | 1,566.43 | 1,328.73 | 37,022.20 | — | — | — | — | 267.63 | 275.52 | 1,200.48 | 582.84 | 198.57 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,020,341K ÷ $3,315K
= 307.80
The interest coverage ratio for Taylor Morrison Home Corp. has fluctuated over the past eight quarters, as seen in the table below:
- Q4 2023: Data not available
- Q3 2023: Data not available
- Q2 2023: 692.63
- Q1 2023: 116.95
- Q4 2022: 81.19
- Q3 2022: 81.56
- Q2 2022: 90.25
- Q1 2022: 121.99
The interest coverage ratio measures the company's ability to pay its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.
In Q2 2023, the interest coverage ratio spiked significantly to 692.63, reflecting a substantial increase in the company's ability to cover its interest expenses. This could be due to a boost in operating income or a decrease in interest expenses during the quarter compared to the previous periods.
However, in Q1 2023, the interest coverage ratio dropped to 116.95, indicating a temporary dip in the company's ability to cover its interest payments. This could be a result of lower operating income or higher interest expenses during that quarter.
Overall, it is essential for the company to maintain a healthy interest coverage ratio to ensure it can comfortably meet its interest obligations and avoid financial distress. Vigilant monitoring of this ratio over time will provide insights into the company's financial health and ability to manage its debt effectively.
Peer comparison
Dec 31, 2023