ANGI Homeservices Inc (ANGI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 40,246 | -8,071 | -74,451 | -79,022 | -5,150 |
| Interest expense | US$ in thousands | 20,169 | 20,137 | 20,107 | 23,485 | 14,178 |
| Interest coverage | 2.00 | -0.40 | -3.70 | -3.36 | -0.36 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $40,246K ÷ $20,169K
= 2.00
The interest coverage ratio for ANGI Homeservices Inc over the specified periods indicates a significant deterioration spanning from December 31, 2020, through December 31, 2023, with a notable improvement projected for December 31, 2024. In 2020, the ratio was substantially negative at -0.36, suggesting that the company's earnings before interest and taxes (EBIT) were insufficient to cover interest obligations, even resulting in a shortfall. The decline continued in 2021, with the ratio worsening to -3.36, indicating a more pronounced inability to meet interest expenses from operating earnings. Similarly, in 2022, the ratio further declined to -3.70, reinforcing ongoing challenges in coverage.
By the end of 2023, the ratio remained negative at -0.40, reflecting a continued struggle, although the negative figures suggest the company remained unable to fully cover its interest costs from its operating earnings. The projection for 2024 marks a significant turnaround, with the ratio expected to reach 2.00, indicating an improvement where operating earnings are anticipated to sufficiently cover interest obligations, possibly even with a margin of safety.
Overall, the trend demonstrates a period of sustained difficulty in interest coverage, transitioning from a negative stance to a positive outlook within the forecasted period, implying potential operational or financial restructuring efforts that are expected to enhance the company's ability to meet its interest commitments moving forward.
Peer comparison
Dec 31, 2024