Verra Mobility Corp (VRRM)

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	173,698	207,044	198,087	200,451	196,480	181,604	178,807	146,618	112,843	69,844	44,059	1,276	41,718	72,628	87,364	126,552	100,120	39,089	28,840	22,409
Interest expense (ttm)	US$ in thousands	86,701	86,190	86,066	77,780	69,372	61,485	52,862	50,057	44,942	41,778	39,719	37,578	40,865	45,676	51,030	57,147	60,729	63,633	69,013	72,936
Interest coverage		2.00	2.40	2.30	2.58	2.83	2.95	3.38	2.93	2.51	1.67	1.11	0.03	1.02	1.59	1.71	2.21	1.65	0.61	0.42	0.31

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $173,698K ÷ $86,701K
= 2.00

The interest coverage ratio for Verra Mobility Corp has been relatively consistent over the past eight quarters, ranging from 2.18 to 2.95. This ratio indicates the company's ability to meet its interest payment obligations with its operating income.

A higher interest coverage ratio suggests that Verra Mobility Corp is more capable of servicing its debt and indicates a lower risk of default. While the company's interest coverage ratio has shown some fluctuations over time, it has generally remained above 2.0, which is considered a healthy level indicating that the company's earnings are sufficient to cover its interest expenses.

Overall, the trend in Verra Mobility Corp's interest coverage ratio reflects a stable financial position in terms of its ability to meet its interest obligations, providing some assurance to creditors and investors regarding the company's debt servicing capability.