Agilysys Inc (AGYS)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	20,684	15,764	6,523	-21,189	-33,857
Interest expense	US$ in thousands	0	0	12	20	9
Interest coverage		—	—	543.58	-1,059.45	-3,761.89

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $20,684K ÷ $0K
= —

The interest coverage ratio for Agilysys Inc has shown significant fluctuations over the past five years. In 2020, the company had an incredibly low interest coverage ratio of -3,761.89, which indicates that its earnings were not sufficient to cover its interest expenses, posing a high risk for creditors and investors.

However, there was a substantial improvement in 2021, with the interest coverage ratio increasing to -1,059.45. While still negative, this improvement suggests that the company's earnings were starting to better support its interest obligations.

In 2022, there was a significant positive turnaround, with the interest coverage ratio jumping to 543.58. This substantial increase indicates that Agilysys Inc's earnings had improved significantly, providing a much healthier buffer to cover its interest expenses.

Unfortunately, the interest coverage ratio for 2023 and 2024 is not available for analysis, as indicated by the "n/a" entries in the data table. This lack of data makes it challenging to assess the recent trend in the company's ability to cover its interest payments.

Overall, Agilysys Inc's interest coverage has shown extreme volatility in recent years, with improvements in profitability leading to better coverage of interest expenses. However, the absence of data for the most recent years limits a comprehensive evaluation of the company's current financial health in terms of its ability to meet its interest obligations.