Blackline Inc (BL)
Interest coverage
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 60,153 | 46,799 | 17,329 | -25,588 | -37,099 | -69,633 | -49,411 | -49,194 | -52,090 | -42,839 | -47,280 | -40,457 | -22,898 | -14,388 | -18,136 | -21,482 | -24,004 | -28,532 | -27,251 | -29,726 |
| Interest expense (ttm) | US$ in thousands | 5,898 | 5,878 | 5,871 | 5,858 | 5,850 | 20,749 | 35,377 | 49,588 | 62,945 | 52,553 | 42,357 | 32,430 | 23,311 | 22,984 | 20,076 | 14,335 | 8,650 | 3,006 | 0 | 0 |
| Interest coverage | 10.20 | 7.96 | 2.95 | -4.37 | -6.34 | -3.36 | -1.40 | -0.99 | -0.83 | -0.82 | -1.12 | -1.25 | -0.98 | -0.63 | -0.90 | -1.50 | -2.78 | -9.49 | — | — |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $60,153K ÷ $5,898K
= 10.20
The interest coverage ratio for Blackline Inc has varied significantly over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest payments on debt with its operating income.
In the most recent quarter, ending December 31, 2023, Blackline Inc had an interest coverage ratio of 10.20, indicating that the company's operating income was 10.20 times greater than its interest expenses. This suggests the company has a strong ability to cover its interest obligations.
However, looking at the trend over the past few quarters, there have been fluctuations in the interest coverage ratio. In the preceding quarter, ending September 30, 2023, the ratio was 7.96, showing a slight decrease compared to the latest quarter but still indicating a healthy level of coverage.
On the other hand, in the first quarter of 2023, ending March 31, the interest coverage ratio was -4.37, implying that the company's operating income was insufficient to cover its interest expenses. This indicates a riskier financial position where the company may struggle to meet its interest obligations.
It is important for stakeholders to monitor Blackline Inc's interest coverage ratio closely as it is a key indicator of the company's financial health and ability to service its debt. Fluctuations in the ratio could signal changes in the company's profitability, efficiency, and risk exposure.
Peer comparison
Dec 31, 2023