The GEO Group (The GEO Group) Interest Coverage

: 1.57 (As of Dec. 2023)

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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. The GEO Group's Operating Income for the three months ended in Dec. 2023 was $84 Mil. The GEO Group's Interest Expense for the three months ended in Dec. 2023 was $-53 Mil. The GEO Group's interest coverage for the quarter that ended in Dec. 2023 was 1.57. The higher the ratio, the stronger the company's financial strength is.

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

GEO' s Interest Coverage Range Over the Past 10 Years
Min: 1.61 Med: 2.04 Max: 2.69
Current: 1.61

GEO's Interest Coverage is ranked worse than
91.28% of 791 companies
in the Business Services industry
Industry Median: 13.38 vs GEO: 1.61

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

The GEO Group Interest Coverage Historical Data

The historical data trend for The GEO Group'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.

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The GEO Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.01

1.98

2.23

2.33

1.61

The GEO Group 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															2.05	1.71	1.68	1.50	1.57

Competitive Comparison

For the Security & Protection Services subindustry, The GEO Group'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.

The GEO Group Interest Coverage Distribution

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

* The bar in red indicates where The GEO Group's Interest Coverage falls into.

The GEO Group 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.

The GEO Group'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, The GEO Group's Interest Expense was $-218 Mil. Its Operating Income was $352 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,808 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	352.389	/	-218.292
	=	1.61

The GEO Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The GEO Group's Interest Expense was $-53 Mil. Its Operating Income was $84 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,808 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	83.76	/	-53.211
	=	1.57

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

The GEO Group (NYSE:GEO) 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 .

The GEO Group Interest Coverage Related Terms

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

The GEO Group (The GEO Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » The GEO Group Inc (NYSE:GEO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

GEO1:Mexico GEG:Germany GEG:Germany

Address

4955 Technology Way, Boca Raton, FL, USA, 33431

Website

https://www.geogroup.com

The GEO Group Inc specializes in detention facilities and community-reentry centers. It operates in four segments: U.S. Secure Services, which primarily encompasses U.S.-based secure services business; Electronic Monitoring and Supervision Services, which conducts its services in the United States, represents services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants; Reentry Services conducts its services in the United States represents services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs; and International Services.

Executives

Shayn P. March	officer: VP of Finance and Treasurer	C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Scott Michael Kernan	director	C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
James H. Black	officer: SVP & Pres, Secure Services	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Christopher D. Ryan	officer: Senior VP, Human Resources	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Lindsay L. Koren	director	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Matthew Albence	officer: Senior VP, Client Relations	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Andrew N Shapiro	director	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Thomas C. Bartzokis	director	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Terry P. Mayotte	director	C/O TREAN INSURANCE GROUP, INC., 150 LAKE STREET WEST, WAYZATA MN 55391
Jack Brewer	director	6200 EXCELSIOR BLVD., SUITE 104, ST. LOUIS PARK MN 55416
George C Zoley	director, officer: Chairman & CEO	C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Anne N Foreman	director	C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Richard H Glanton	director	C/O THE GEO GROUP, INC., 4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Duane Helkowski	director	4955 TECHNOLOGY WAY, BOCA RATON FL 33431
Blake Davis	officer: Pres. GEO Secure Services	4955 TECHNOLOGY WAY, BOCA RATON FL 33431