Corsair Gaming Inc (CRSR)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -48,451 | -42,620 | -21,821 | -463 | 9,689 | 11,205 | 2,637 | -48,976 | -52,997 | -43,159 | -23,078 | 65,962 | 136,235 | 171,650 | 210,639 | 212,347 | 158,332 | 115,257 | 77,575 | 39,303 |
| Interest expense (ttm) | US$ in thousands | 13,207 | 14,489 | 14,007 | 15,067 | 14,204 | 13,350 | 13,555 | 10,735 | 9,186 | 6,706 | 11,174 | 14,006 | 17,673 | 22,677 | 25,645 | 30,709 | 35,137 | 37,601 | 36,550 | 26,978 |
| Interest coverage | -3.67 | -2.94 | -1.56 | -0.03 | 0.68 | 0.84 | 0.19 | -4.56 | -5.77 | -6.44 | -2.07 | 4.71 | 7.71 | 7.57 | 8.21 | 6.91 | 4.51 | 3.07 | 2.12 | 1.46 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-48,451K ÷ $13,207K
= -3.67
The interest coverage ratio for Corsair Gaming Inc has displayed fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).
From March 31, 2020, to June 30, 2021, the interest coverage ratio showed an improving trend, steadily increasing from 1.46 to 8.21. This indicated an enhancement in Corsair Gaming Inc's ability to cover its interest expenses with its operating profits during this period.
However, from September 30, 2021, to December 31, 2021, there was a slight decline in the interest coverage ratio, although it remained relatively strong at 7.71. Following this, the ratio decreased more significantly to 4.71 as of March 31, 2022. This reduction may indicate a potential strain on the company's ability to cover its interest payments with its operating earnings during that quarter.
Subsequently, the interest coverage ratio took a sharp downturn, dropping to negative territory from June 30, 2022, to December 31, 2024. The negative interest coverage ratios during this period imply that Corsair Gaming Inc's earnings were insufficient to cover its interest expenses, indicating financial distress or underperformance.
The negative trend in the interest coverage ratio after June 30, 2022, suggests a concerning situation regarding the company's ability to service its debt obligations with its operating income. This deterioration in the ratio highlights the importance for Corsair Gaming Inc to closely monitor and improve its financial performance and cash flow management to ensure long-term solvency and financial stability.
Peer comparison
Dec 31, 2024