FTI Consulting (FTI Consulting) Interest Coverage : 29.52 (As of Dec. 2023)

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What is FTI Consulting Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. FTI Consulting's Operating Income for the three months ended in Dec. 2023 was $115 Mil. FTI Consulting's Interest Expense for the three months ended in Dec. 2023 was $-4 Mil. FTI Consulting's interest coverage for the quarter that ended in Dec. 2023 was 29.52. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for FTI Consulting's Interest Coverage or its related term are showing as below:

FCN' s Interest Coverage Range Over the Past 10 Years
Min: 3.2 Med: 11.41 Max: 30.95
Current: 23.22

FCN's Interest Coverage is ranked better than
58.79% of 791 companies
in the Business Services industry
Industry Median: 13.44 vs FCN: 23.22

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

FTI Consulting Interest Coverage Historical Data

The historical data trend for FTI Consulting's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

FTI Consulting Interest Coverage Chart

FTI Consulting Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

15.91

14.49

15.38

30.95

26.35

FTI Consulting Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															30.91	15.60	24.60	23.92	29.52

Competitive Comparison of FTI Consulting's Interest Coverage

For the Consulting Services subindustry, FTI Consulting's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

FTI Consulting's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, FTI Consulting's Interest Coverage distribution charts can be found below:

* The bar in red indicates where FTI Consulting's Interest Coverage falls into.

FTI Consulting Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

FTI Consulting's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, FTI Consulting's Interest Expense was $-14 Mil. Its Operating Income was $378 Mil. And its Long-Term Debt & Capital Lease Obligation was $224 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	377.561	/	-14.331
	=	26.35

FTI Consulting's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, FTI Consulting's Interest Expense was $-4 Mil. Its Operating Income was $115 Mil. And its Long-Term Debt & Capital Lease Obligation was $224 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	115.021	/	-3.896
	=	29.52

The higher the ratio, the stronger the company's Financial Strength is.

FTI Consulting (NYSE:FCN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

FTI Consulting Interest Coverage Related Terms

Thank you for viewing the detailed overview of FTI Consulting's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

FTI Consulting (FTI Consulting) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » FTI Consulting Inc (NYSE:FCN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FCQ:Germany

Address

555 12th Street NW, Suite 700, Washington, DC, USA, 20004

Website

https://www.fticonsulting.com

FTI Consulting Inc is a firm that generates its sales by providing professional business advisory services to customers. The company operates through five segments, namely corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. Customers of the company come from a wide array of sectors, including construction, energy and power, environmental, financial institutions, healthcare and life science, insurance, real estate and infrastructure, retail and consumer products, telecom, media, and technology. The majority of the company's revenue is derived from serving customers in the United States.

Executives

Holly Paul	officer: Chief Human Resources Officer	6016 KINGSFORD ROAD, BETHESDA MD 20817
Ajay Sabherwal	officer: Chief Financial Officer	C/O FAIRPOINT COMMUNICATIONS, INC., 521 E. MOREHEAD STREET, SUITE 500, CHARLOTTE NC 28202
Paul Alderman Linton	officer: Chief Strategy/Transf. Officer	5915 SONOMA ROAD, BETHESDA MD 20817
Mark S. Bartlett	director	4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Brenda J Bacon	director	909 COMMERCE ROAD, ANNAPOLIS MD 21403
Steven Henry Gunby	director, officer: President & CEO	9508 HEMSWELL PLACE, POTOMAC MD 20854
Elsy Lisa Boglioli	director	555 12TH STREET NW, WASHINGTON DC 20004
Curtis P Lu	officer: General Counsel	1203 STONNELL PLACE, ALEXANDRIA VA 22302
Vernon James Ellis	director	49 QUEENS GATE TERRACE, LONDON X0 SW7 5PN
Claudio Costamagna	director	VIA SEBETO 4, MILANO L6 20123
Stephen C Robinson	director	11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Nicole S Jones	director	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Nicholas C Fanandakis	director	1007 MARKET STREET, WILMINGTON DE 19898
Gerard E Holthaus	director	3129 BLENDON ROAD, OWINGS MILLS MD 21117
Brendan J Keating	officer: CAO and Controller	C/O FTI CONSULTING INC, 555 12TH STREET NW, WASHINGTON DC 20004