Aspen Technology Inc (AZPN)
Interest coverage
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -89,539 | -122,763 | -181,942 | -192,094 | -183,065 | -152,893 | -77,163 |
| Interest expense (ttm) | US$ in thousands | 0 | 24,058 | 34,027 | 43,996 | 48,116 | 27,600 | 19,203 |
| Interest coverage | — | -5.10 | -5.35 | -4.37 | -3.80 | -5.54 | -4.02 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-89,539K ÷ $0K
= —
The interest coverage ratio of Aspen Technology Inc has been consistently negative over the past seven quarters, indicating a concerning trend. Negative interest coverage ratios suggest that the company's operating profits are insufficient to cover its interest expenses, which could raise solvency concerns and indicate financial distress. This pattern of consistently negative interest coverage ratios may signal potential challenges in meeting debt obligations and may be a cause for investor and creditor concern. Further analysis and monitoring of the company's financial performance and debt management strategies are recommended to assess and address the underlying issues contributing to the negative interest coverage ratios.
Peer comparison
Jun 30, 2024