Now Inc (DNOW)

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 121,000 124,000 133,000 136,000 140,000 138,000 145,000 148,000 136,000 116,000 82,000 43,000 16,000 -33,000 -64,000 -93,000 -102,000 -72,000 -37,000 9,000
Interest expense (ttm) US$ in thousands 0 1,000 1,000 1,000 2,000 5,000 5,000 26,000 35,000 31,000 31,000 10,000 0 0 0 0 0 0 1,000 2,000
Interest coverage — 124.00 133.00 136.00 70.00 27.60 29.00 5.69 3.89 3.74 2.65 4.30 — — — — — — -37.00 4.50

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $121,000K ÷ $0K
= —

The interest coverage ratio of Now Inc provides insight into 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.

Based on the provided data:
- As of March 31, 2020, the interest coverage ratio was 4.50, suggesting that the company's operating income was 4.5 times its interest expenses, indicating a relatively healthy position.
- In June 2020, the interest coverage ratio significantly dropped to -37.00, which may indicate a situation where the company's operating income was not sufficient to cover its interest expenses, raising concerns about financial stability.
- From March 2021 to June 2024, no specific data is available, suggesting that the interest coverage ratio for these periods was not disclosed or was not applicable.

Overall, the interest coverage ratios fluctuated over the period, showing both strengths and weaknesses in the company's ability to cover its interest expenses with its operating income. It is important to monitor this ratio continuously to assess the company's financial health and ability to meet its debt obligations.