Corsair Gaming Inc (CRSR)
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 | -48,451 | 13,941 | -54,580 | 137,894 | 158,361 |
| Interest expense | US$ in thousands | 13,207 | 17,420 | 9,186 | 17,673 | 35,137 |
| Interest coverage | -3.67 | 0.80 | -5.94 | 7.80 | 4.51 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-48,451K ÷ $13,207K
= -3.67
Corsair Gaming Inc's interest coverage ratio has shown some fluctuations over the past few years.
As of December 31, 2020, the interest coverage ratio stood at 4.51, indicating that the company's operating income was sufficient to cover its interest expenses with a comfortable margin.
By December 31, 2021, the interest coverage ratio improved to 7.80, suggesting a further strengthening of the company's ability to meet its interest obligations through its operating earnings.
However, there was a significant decline in the interest coverage ratio to -5.94 by December 31, 2022. A negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses during that period, which may raise concerns about its financial health and ability to service its debt.
Although there was a slight improvement by December 31, 2023, with an interest coverage ratio of 0.80, it remained below the ideal threshold of 1. This suggests that the company was still struggling to generate enough operating income to cover its interest payments.
By December 31, 2024, the interest coverage ratio deteriorated further to -3.67, indicating persistent challenges in meeting the interest expenses from the operating income.
Overall, the fluctuating trend in Corsair Gaming Inc's interest coverage ratio raises some red flags regarding its financial stability and ability to honor its debt obligations in the long term. Investors and stakeholders may need to closely monitor this metric to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024