Trex Company Inc (TREX)
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 | 276,204 | 246,735 | 275,376 | 233,635 | 188,199 |
| Interest expense | US$ in thousands | 5 | 30,743 | 90,993 | -999 | 1,503 |
| Interest coverage | 55,240.80 | 8.03 | 3.03 | — | 125.22 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $276,204K ÷ $5K
= 55,240.80
The interest coverage ratio for TREX Co., Inc. as at Dec 31, 2023, stands at an exceptionally high level of 55,240.80. This indicates that the company's operating income is significantly more than enough to cover its interest expenses, reflecting a strong financial position and ability to meet its debt obligations without any difficulty. However, since the interest coverage ratio for the prior years (2022, 2021, 2020, and 2019) is not available in the provided data, it is challenging to analyze the trend or compare the current ratio to historical performance. In any case, the current interest coverage ratio suggests that TREX Co., Inc. is in a very stable position regarding its ability to make interest payments on its outstanding debt.
Peer comparison
Dec 31, 2023