Corsair Gaming Inc (CRSR)

Interest coverage ratio reflects the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses.

Analyzing the trend of Corsair Gaming Inc's interest coverage ratio over the past five years, we observe significant fluctuations. In 2023, the interest coverage ratio is 0.92, which may raise concerns as it indicates that the company's operating income is just sufficient to cover its interest expenses.

The negative interest coverage ratio in 2022 (-5.96) is alarming, suggesting that the company's operating income was insufficient to cover its interest payments during that period. This raises red flags about Corsair Gaming Inc's ability to meet its debt obligations from its earnings.

The improvement in 2021 with an interest coverage ratio of 7.80 indicates a positive trend, where the company's operating income was significantly higher than its interest expenses, reflecting a healthier financial position.

In 2020, the interest coverage ratio of 4.51 shows that the company was capable of covering its interest payments about four and a half times with its operating income, suggesting a good level of financial health.

The lowest interest coverage ratio in 2019 at 0.67 indicates a precarious situation where the operating income was barely sufficient to cover the interest expenses, raising concerns about the company's ability to meet its financial obligations.

In conclusion, the fluctuating trend in Corsair Gaming Inc's interest coverage ratio raises concerns about the company's ability to consistently cover its interest expenses with its operating income. Further analysis of the company's financial performance and debt management strategies is warranted to assess its long-term financial stability and sustainability.

Peer comparison

Dec 31, 2023