Digi International Inc (DGII)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	40,559	50,124	53,703	51,090	46,571	38,318	24,645	18,674	14,419	10,384	11,887	10,790	11,205	11,083	8,794	7,636	4,959	11,233	10,378	11,782
Interest expense (ttm)	US$ in thousands	24,926	25,236	24,000	22,693	20,763	19,690	15,023	10,098	5,881	1,385	1,545	2,074	3,562	3,592	3,074	2,174	442	102	107	112
Interest coverage		1.63	1.99	2.24	2.25	2.24	1.95	1.64	1.85	2.45	7.50	7.69	5.20	3.15	3.09	2.86	3.51	11.22	110.13	96.99	105.20

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $40,559K ÷ $24,926K
= 1.63

The interest coverage ratio for Digi International, Inc. has been showing a relatively stable trend over the past eight quarters, ranging between 1.64 to 2.02. This ratio indicates the company's ability to meet its interest obligations on outstanding debt with its earnings before interest and taxes (EBIT).

The consistent values around 1.9 suggest that the company's operating income remains adequate to cover its interest expenses each quarter. A ratio above 1 indicates the company is generating enough earnings to cover its interest payments.

It is important for investors and creditors to monitor this ratio as a declining trend could indicate potential financial distress, while an increasing trend could signify improving financial health and better creditworthiness for the company.

Overall, based on the data provided, Digi International, Inc. appears to have a healthy interest coverage ratio, demonstrating its ability to meet its interest obligations comfortably in the recent quarters.