Agilysys Inc (AGYS)

Interest coverage

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	17,971	18,828	15,647	14,224	15,760	13,180	10,180	7,794	6,524	-20,026	-23,475	-18,516	-21,190	-23,368	-23,951	-32,816	-33,857	-10,438	-11,839	-12,699
Interest expense (ttm)	US$ in thousands	0	0	0	-1	-2	5	9	11	13	13	18	19	19	-7	9	9	9	30	8	9
Interest coverage		—	—	—	—	—	2,636.00	1,131.11	708.55	501.85	-1,540.46	-1,304.17	-974.53	-1,115.26	—	-2,661.22	-3,646.22	-3,761.89	-347.93	-1,479.88	-1,411.00

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $17,971K ÷ $0K
= —

Agilysys Inc's interest coverage ratio has fluctuated significantly over the past few quarters. The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio is generally favorable as it suggests the company has sufficient earnings to cover its interest expenses.

From the data provided, we can see that the interest coverage ratio was not available for the most recent quarter, indicating that the information was either not disclosed or the earnings were insufficient to cover interest expenses. Prior to that, the interest coverage ratio was strong at 2,636.00 in December 2022, indicating a healthy ability to cover interest payments by earnings.

However, looking at historical data, there are several quarters where the interest coverage ratio was negative, particularly in the most recent quarters of 2021 and 2020. Negative interest coverage ratios imply that the company's earnings were insufficient to cover its interest expenses, which raises concerns about its financial health and ability to service its debt obligations.

Overall, the fluctuating nature of Agilysys Inc's interest coverage ratio suggests potential variability in its ability to cover interest payments. Investors and creditors should closely monitor this ratio to assess the company's financial stability and debt repayment capacity.