ANGI Homeservices Inc (ANGI)
Interest coverage
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 53,307 | 31,192 | 57,199 | 30,401 | 9,719 | -7,139 | -93,424 | -94,661 | -107,312 | -127,518 | -105,571 | -106,784 | -116,005 | -82,315 | -53,812 | -41,156 | 10,067 | -5,150 | 7,013 | 36,040 |
| Interest expense (ttm) | US$ in thousands | 20,175 | 20,169 | 20,161 | 20,153 | 20,146 | 20,137 | 20,131 | 20,124 | 20,116 | 20,109 | 20,100 | 21,102 | 21,890 | 23,485 | 25,048 | 22,715 | 18,521 | 14,178 | 10,122 | 9,430 |
| Interest coverage | 2.64 | 1.55 | 2.84 | 1.51 | 0.48 | -0.35 | -4.64 | -4.70 | -5.33 | -6.34 | -5.25 | -5.06 | -5.30 | -3.51 | -2.15 | -1.81 | 0.54 | -0.36 | 0.69 | 3.82 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $53,307K ÷ $20,175K
= 2.64
The interest coverage ratio for ANGI Homeservices Inc. demonstrates significant fluctuation over the analyzed period, reflecting the company's evolving ability to meet its interest obligations from its earnings.
From June 30, 2020, to March 31, 2021, the ratio experienced notable volatility, starting at 3.82, indicating that earnings before interest and taxes (EBIT) substantially exceeded interest expenses at that time. However, this trend deteriorated sharply, with the ratio declining to negative territory of -0.36 by December 31, 2020, and further decreasing to -3.51 by December 31, 2021. The negative figures during this period suggest that the company's EBIT was insufficient to cover interest expenses, indicating periods of financial strain.
The subsequent quarters from March 31, 2022, through September 2023, continued to show negative interest coverage ratios, with most values ranging between approximately -5 and -2, underscoring persistent difficulties in generating sufficient earnings to service interest. This extended period of negative ratios reflects ongoing challenges in profitability or major debt-related expenses surpassing operating income.
However, starting from December 31, 2023, there is a noticeable positive shift. The ratio moves into positive territory at 0.48, followed by further improvement to 1.51, 2.84, and 1.55 by September 30, 2024, and December 31, 2024, respectively. As of March 31, 2025, the ratio stands at 2.64, indicating that now the company's earnings are more comfortably covering its interest expenses.
This positive trajectory in recent periods suggests an improvement in profitability or a reduction in interest obligations relative to earnings, potentially signaling a turning point in the company's financial health concerning interest servicing capacity. Overall, the interest coverage ratio has evolved from a period of significant distress and negative coverage to a more stable and sustainable position, albeit with variability, in recent quarters.
Peer comparison
Mar 31, 2025