Blackline Inc (BL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 60,181 | -37,061 | -52,081 | -22,898 | -22,160 |
| Interest expense | US$ in thousands | 5,898 | 5,850 | 62,945 | 23,311 | 8,650 |
| Interest coverage | 10.20 | -6.34 | -0.83 | -0.98 | -2.56 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $60,181K ÷ $5,898K
= 10.20
The interest coverage ratio reflects Blackline Inc's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses. Looking at the trend over the past five years, there is a significant improvement in Blackline Inc's interest coverage ratio.
In 2023, the interest coverage ratio stands at 10.20, showing a substantial increase from the negative figures in the previous years. This indicates that Blackline Inc's operating income is more than sufficient to cover its interest expenses in 2023, suggesting improved financial health and stability.
The sharp increase in the interest coverage ratio from negative values in 2022 and earlier years to a positive figure in 2023 signifies that Blackline Inc has likely implemented measures to boost profitability and efficiency, leading to a healthier financial position. This positive trend in interest coverage ratio is a good sign for investors and creditors, indicating a reduced risk of default on interest payments and a stronger ability to meet debt obligations.
Peer comparison
Dec 31, 2023