Name: Interest Coverage

Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.

Interpretation:
• In '2021', FLR's interest coverage was -2.84, indicating the firm's ability to meet its interest obligations. Industry average for Military/Government/Technical in '2021' stood at 3.07.
• In '2022', FLR's interest coverage was 5.14, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Military/Government/Technical in '2022' stood at 3.11. Industry average increased by 0.04 compared to previous year.
• In '2023', FLR's interest coverage was 6.25, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Military/Government/Technical in '2023' stood at 2.59. Industry average declined by 0.52 from previous year.
• In '2024', FLR's interest coverage was 14.33, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Military/Government/Technical in '2024' stood at 2.75. Industry average increased by 0.16 compared to previous year.
Overall, FLR's interest coverage has been volatile but showed an upward trend over the past 4 years.

Formula: Interest Coverage = EBIT / Interest Expense

Good Range: Minimum 3-5 desirable; below 1 is risky.