Blackbaud Inc (BLKB)
Interest coverage
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 | Mar 31, 2020 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -278,684 | 179,688 | 168,106 | 125,403 | 103,397 | 21,372 | -12,331 | -16,976 | -14,252 | -9,540 | 3,286 | 11,898 | 22,748 | 27,197 | 24,347 | 31,419 | 35,074 | 40,863 | 41,747 | 38,469 |
Interest expense (ttm) | US$ in thousands | 55,634 | 48,604 | 44,084 | 39,536 | 39,922 | 41,340 | 41,057 | 38,866 | 35,803 | 29,744 | 24,410 | 20,488 | 18,003 | 19,409 | 19,403 | 18,242 | 17,287 | 16,434 | 17,548 | 19,454 |
Interest coverage | -5.01 | 3.70 | 3.81 | 3.17 | 2.59 | 0.52 | -0.30 | -0.44 | -0.40 | -0.32 | 0.13 | 0.58 | 1.26 | 1.40 | 1.25 | 1.72 | 2.03 | 2.49 | 2.38 | 1.98 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-278,684K ÷ $55,634K
= -5.01
The interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
In the case of Blackbaud Inc, the interest coverage ratio fluctuated over the period from March 31, 2020, to December 31, 2024. It started at a relatively low level of 1.98 in March 2020, improved gradually, reaching its peak at 3.81 in June 2024, before experiencing a significant decline to -5.01 by December 2024. A negative interest coverage ratio typically indicates that the company's earnings are insufficient to cover its interest payments, raising concerns about its financial health.
Overall, the trend in Blackbaud Inc's interest coverage ratio shows variability and indicates potential challenges in meeting its interest obligations, especially towards the end of the period under consideration. Investors and creditors may view this trend as a red flag and may require further analysis of the company's financial position and future prospects.
Peer comparison
Dec 31, 2024