Doximity Inc (DOCS)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	167,765	112,798	107,337	57,769
Interest expense	US$ in thousands	—	—	8,048	469	4,466
Interest coverage		—	—	14.02	228.86	12.94

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —

Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Looking at the data provided for Doximity Inc, we observe a significant improvement in interest coverage over the years.

In March 2021, the interest coverage ratio was 12.94, indicating that the company generated operating income nearly 13 times greater than its interest expenses. This suggests a healthy ability to cover interest payments.

By March 2022, the interest coverage ratio surged to 228.86, reflecting a substantial increase in the company's ability to cover its interest expenses. This sharp improvement may indicate increased profitability or reduced interest costs.

However, in March 2023, the interest coverage ratio dropped to 14.02, although still above the industry average. It is essential for the company to monitor this ratio closely to ensure it can comfortably meet its interest obligations.

Notably, the data shows that there is no information available for the interest coverage ratio for March 31, 2024 and 2025. It is important for stakeholders to seek clarification on why this data is missing to accurately assess the company's financial health for these years.

Overall, the trend in Doximity Inc's interest coverage indicates a generally positive ability to service its debt obligations, with a remarkable improvement in 2022, followed by some fluctuation in subsequent years. Monitoring this ratio will be crucial for assessing the company's financial stability and risk management in the future.