CarGurus (CARG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 147,913 | 32,627 | 111,362 | 149,360 | 82,520 |
| Interest expense | US$ in thousands | — | — | 3,845 | 37 | 1,354 |
| Interest coverage | — | — | 28.96 | 4,036.76 | 60.95 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $147,913K ÷ $—K
= —
Interest coverage ratio is a financial metric used to assess a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing CarGurus' interest coverage ratio over the years, we observe a significant increase from 60.95 in 2020 to 4,036.76 in 2021, demonstrating a substantial improvement in the company's ability to cover its interest expenses. This dramatic surge in the interest coverage ratio indicates that CarGurus generated significantly higher earnings relative to its interest payments in 2021.
In 2022, the interest coverage ratio decreased to 28.96, which is still a healthy level, although lower than the previous year. The company's ability to cover its interest expenses remains strong based on this ratio.
However, the data for 2023 and 2024 shows "—", indicating a lack of information for these years, making it challenging to assess the company's interest coverage during these periods. It is important for investors and stakeholders to monitor future financial reports to understand how CarGurus' interest coverage ratio evolves over time and to assess the company's financial health and risk management.
Peer comparison
Dec 31, 2024