Vulcan Materials Company (VMC)
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 | 1,363,900 | 1,323,600 | 1,402,900 | 1,405,300 | 1,422,800 | 1,249,000 | 1,143,200 | 995,100 | 955,000 | 960,861 | 919,686 | 912,558 | 1,019,502 | 991,880 | 1,023,162 | 1,026,950 | 883,614 | 904,995 | 912,423 | 888,452 |
| Interest expense (ttm) | US$ in thousands | 191,200 | 155,100 | 163,300 | 169,800 | 179,700 | 189,900 | 189,400 | 181,400 | 168,300 | 156,800 | 147,476 | 150,472 | 147,690 | 145,474 | 144,480 | 136,738 | 134,393 | 131,344 | 127,759 | 126,840 |
| Interest coverage | 7.13 | 8.53 | 8.59 | 8.28 | 7.92 | 6.58 | 6.04 | 5.49 | 5.67 | 6.13 | 6.24 | 6.06 | 6.90 | 6.82 | 7.08 | 7.51 | 6.57 | 6.89 | 7.14 | 7.00 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,363,900K ÷ $191,200K
= 7.13
The interest coverage ratio of Vulcan Materials Company has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating profits.
The interest coverage ratio ranged from a low of 5.49 on March 31, 2023, to a high of 8.59 on June 30, 2024. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations using its earnings.
It is worth noting that the interest coverage ratio for Vulcan Materials Company fluctuated throughout the period, suggesting possible changes in the company's financial position and performance. A declining trend in the interest coverage ratio may signal potential difficulties in meeting interest payments, while an increasing trend could indicate improved financial health.
Overall, the interest coverage ratio of Vulcan Materials Company has shown some variability, and it is essential for investors and stakeholders to monitor this ratio along with other financial indicators to assess the company's financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2024