DocuSign Inc (DOCU)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 214,037 | 185,017 | 163,398 | 129,664 | 100,521 | 76,160 | 12,138 | -52,016 | -83,486 | -118,373 | -96,053 | -79,640 | -60,464 | -88,432 | -132,922 | -165,324 | -198,735 | -181,711 | -171,164 | -175,247 |
| Interest expense (ttm) | US$ in thousands | 1,550 | 2,859 | 3,974 | 5,022 | 6,844 | 6,787 | 6,666 | 6,706 | 6,389 | 6,354 | 6,383 | 6,420 | 6,443 | 12,612 | 18,896 | 24,911 | 30,799 | 30,474 | 30,069 | 29,658 |
| Interest coverage | 138.09 | 64.71 | 41.12 | 25.82 | 14.69 | 11.22 | 1.82 | -7.76 | -13.07 | -18.63 | -15.05 | -12.40 | -9.38 | -7.01 | -7.03 | -6.64 | -6.45 | -5.96 | -5.69 | -5.91 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $214,037K ÷ $1,550K
= 138.09
The interest coverage ratio of DocuSign Inc shows a declining trend from April 2020 to January 2023, with negative values ranging from -5.91 to -18.63. This indicates that the company's operating income was insufficient to cover its interest expenses during this period. However, from July 2023 onwards, the interest coverage ratio started to improve significantly, turning positive in July 2023 at 1.82 and increasing to 138.09 by January 2025. This improvement suggests that DocuSign's operating income has become more robust in relation to its interest obligations, signaling a healthier financial position and a reduced risk of default on debt payments. The significant increase in the interest coverage ratio from 2023 to 2025 indicates an improving financial performance and the ability of the company to comfortably cover its interest expenses with its operating income.
Peer comparison
Jan 31, 2025