DoubleVerify Holdings Inc (DV)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 96,943 | 60,273 | 26,993 |
| Interest expense | US$ in thousands | 1,066 | 905 | 1,172 |
| Interest coverage | 90.94 | 66.60 | 23.03 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $96,943K ÷ $1,066K
= 90.94
DoubleVerify Holdings Inc's interest coverage has shown a positive trend over the past three years, indicating the company's improving ability to cover its interest obligations from its earnings. The interest coverage ratio has increased from 22.77 in 2021 to 65.22 in 2022 and further to 80.42 in 2023. This signifies that the company's earnings are significantly higher relative to its interest expenses, providing a comfortable buffer to meet these obligations.
The substantial growth in the interest coverage ratio reflects DoubleVerify's enhanced financial strength and stability, as the company is generating more income to cover its interest payments. A higher interest coverage ratio is generally viewed favorably by investors and creditors as it suggests lower default risk and greater financial health for the company.
Overall, the improving trend in DoubleVerify's interest coverage ratio indicates efficient management of debt and a healthy financial position, which could enhance the company's ability to pursue growth opportunities and create value for its stakeholders.
Peer comparison
Dec 31, 2023