Dynatrace Holdings LLC (DT)

Interest coverage

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	156,938	187,040	165,688	137,492	129,751	125,558	123,721	101,030	85,826	79,435	65,411	78,412	81,851	80,603	87,364	90,429	92,031	80,292	61,307	-116,087
Interest expense (ttm)	US$ in thousands	0	11,024	21,629	30,138	37,284	30,326	24,508	16,512	11,541	9,709	7,372	9,510	10,192	10,993	11,998	12,949	14,205	16,852	19,392	30,324
Interest coverage		—	16.97	7.66	4.56	3.48	4.14	5.05	6.12	7.44	8.18	8.87	8.25	8.03	7.33	7.28	6.98	6.48	4.76	3.16	-3.83

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $156,938K ÷ $0K
= —

The interest coverage ratio is a measure of a company's ability to cover its interest payments using its earnings before interest and taxes (EBIT). It indicates the company's ability to meet its interest obligations and is an important metric for lenders and investors to assess the company's financial health.

Based on the data provided for Dynatrace Holdings LLC, the interest coverage ratio has shown significant fluctuations over the reporting periods. The ratio was negative (-3.83) as of June 30, 2020, indicating that the company's EBIT was insufficient to cover its interest expenses during that period. However, the ratio improved in subsequent periods, reaching a peak of 16.97 as of December 31, 2024, suggesting a strong ability to cover interest payments with operating income.

Overall, the trend demonstrates an initial struggle to cover interest payments, followed by a steady improvement in the company's ability to service its debt obligations. The recent decrease in the interest coverage ratio as of March 31, 2025, when compared to the previous period, may indicate a potential decline in earnings relative to interest expenses. This trend warrants further investigation to assess the company's financial performance and debt servicing capacity in the future.