Agilysys Inc (AGYS)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,592 | 20,684 | 15,764 | 6,523 | -21,189 |
| Interest expense | US$ in thousands | 1,529 | 0 | 2,889 | 12 | 20 |
| Interest coverage | 9.54 | — | 5.46 | 543.58 | -1,059.45 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,592K ÷ $1,529K
= 9.54
The interest coverage ratio for Agilysys Inc over the years shows a significant fluctuation. In March 31, 2021, the ratio was extremely low at -1,059.45, indicating that the company's earnings were not sufficient to cover its interest expenses, posing a potential risk of default. However, by March 31, 2022, the ratio improved substantially to 543.58, reflecting a healthier financial position with earnings more than sufficient to cover interest payments.
In the following years, the interest coverage ratio continued to improve significantly, reaching 5.46 by March 31, 2023 and further increasing to 9.54 by March 31, 2025. These positive trends indicate that the company's ability to cover its interest obligations with operating income has strengthened over time. It suggests that Agilysys Inc is better positioned to meet its debt obligations and indicates improved financial health and stability.
However, it's worth noting that there is missing data for March 31, 2024, which limits a comprehensive analysis for that particular year. Overall, the company's interest coverage performance has shown positive momentum, reflecting better financial management and a more sustainable financial structure.
Peer comparison
Mar 31, 2025