TRI Pointe Homes Inc (TPH)

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	578,237	584,449	527,868	461,773	442,167	544,129	655,484	750,255	769,990	710,713	688,985	667,378	646,071	585,286	513,965	444,685	391,858	405,150	384,168	331,770
Interest expense (ttm)	US$ in thousands	0	9,761	46,680	84,074	93,835	92,822	56,913	20,815	11,811	3,063	2,053	757	0	0	0	0	0	0	0	0
Interest coverage		—	59.88	11.31	5.49	4.71	5.86	11.52	36.04	65.19	232.03	335.60	881.61	—	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $578,237K ÷ $0K
= —

TRI Pointe Homes Inc's interest coverage ratio has shown volatility and fluctuations over the past few years. The company did not provide any figures for interest coverage up until the first quarter of 2022, indicating a lack of clarity on its ability to cover interest expenses with operating income during that period.

From March 2022 onwards, the interest coverage ratio improved significantly, indicating that the company's ability to cover interest expenses with its earnings has strengthened. The ratio of 881.61 in March 2022 suggests a strong ability to cover interest payments, but this may have been influenced by specific factors or one-time events.

Subsequently, the interest coverage ratio decreased to 11.52 in June 2023, indicating a decline in the company's ability to cover interest expenses with operating income during that period. The ratio continued to decline further in the following quarters, reaching the lowest point of 4.71 in December 2023, suggesting potential challenges in meeting interest obligations.

While there was a slight improvement in the interest coverage ratio in the first quarter of 2024 to 5.49, it remained relatively low compared to previous years. The ratio fluctuated in the following quarters, with a notable increase to 59.88 in September 2024, indicating a potential improvement in the company's ability to cover interest payments.

Overall, TRI Pointe Homes Inc's interest coverage ratio has displayed variability and a mix of strong and weaker periods, which may reflect changes in the company's financial performance and ability to meet its interest obligations. Investors and stakeholders should closely monitor these fluctuations to assess the company's financial health and sustainability.