Dynatrace Holdings LLC (DT)

Interest coverage

		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	128,400	124,708	122,875	108,005	92,811	91,009	78,337	79,189	81,307	84,530	87,422	89,002	91,896	79,079	62,527	-114,827	-171,939
Interest expense (ttm)	US$ in thousands	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	45,397
Interest coverage		3.44	4.11	5.01	6.54	8.04	9.37	10.63	8.33	7.98	7.69	7.29	6.87	6.47	4.69	3.22	-3.79	-3.79

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $128,400K ÷ $37,284K
= 3.44

The interest coverage ratio for Dynatrace Holdings LLC has exhibited fluctuating trends over the past few quarters. The ratio was positive and healthy for most periods, indicating the company's ability to meet its interest obligations comfortably. However, there were two quarters (Mar 31, 2020 and Jun 30, 2020) where the interest coverage ratio was negative, implying that the company's earnings were insufficient to cover its interest expenses during those periods.

Overall, the interest coverage ratio improved from negative values in early 2020 to reach a peak of 10.63 in Sep 30, 2022, reflecting a significant enhancement in the company's ability to pay interest. Despite some fluctuations, the ratio generally remained above 3, implying that the business had an adequate cushion to cover its interest payments with operating income. This trend suggests a relatively stable financial position for Dynatrace Holdings LLC in managing its debt obligations.