DoubleVerify Holdings Inc (DV)

Interest coverage

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 89,908 94,245 84,165 86,537 93,650 80,522 73,167 68,825 53,356 41,164 40,093 18,977 26,993 14,931 8,775 25,768 21,890 30,913 37,118
Interest expense (ttm) US$ in thousands 1,118 1,093 1,028 1,042 1,066 1,015 953 929 905 917 940 1,014 1,172 2,909 3,518 4,157 4,931 2,958 2,100
Interest coverage 80.42 86.23 81.87 83.05 87.85 79.33 76.78 74.09 58.96 44.89 42.65 18.71 23.03 5.13 2.49 6.20 4.44 10.45 17.68

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $89,908K ÷ $1,118K
= 80.42

Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

Analyzing DoubleVerify Holdings Inc's interest coverage based on the provided data shows a fluctuating trend over the period. In June 2020, the interest coverage was strong at 17.68, indicating that the company was comfortably able to cover its interest expenses. However, this ratio declined in subsequent quarters, reaching a low of 2.49 in June 2021, suggesting potential challenges in meeting interest payments.

From September 2021 onwards, the interest coverage ratio showed an improving trend, indicating that the company's ability to cover its interest expenses was recovering. By December 2022, the interest coverage ratio had significantly improved to 58.96 and continued to increase in the following periods, reaching a peak of 87.85 by December 2023.

The consistently high interest coverage ratios in 2023 and 2024 suggest that DoubleVerify Holdings Inc's earnings were comfortably sufficient to cover its interest expenses multiple times over, indicating a strong financial position in terms of servicing its debt obligations.

Overall, the analysis of DoubleVerify Holdings Inc's interest coverage ratio indicates both periods of strength and potential vulnerability in managing interest payments, but ultimately shows a positive trend towards significantly improved coverage ratios in the later periods.