EPAM Systems Inc (EPAM)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 544,584 | 536,585 | 572,966 | 471,642 | 379,324 |
| Interest expense | US$ in thousands | — | 2,818 | 10,025 | 1,727 | 5,512 |
| Interest coverage | — | 190.41 | 57.15 | 273.10 | 68.82 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $544,584K ÷ $—K
= —
The interest coverage ratio for EPAM Systems Inc has shown significant variations over the years. In 2020, the interest coverage ratio was 68.82, indicating that the company's operating income was sufficient to cover its interest expenses nearly 69 times over. This improved substantially in 2021 to 273.10, reflecting a stronger ability to meet interest obligations.
However, there was a decline in the interest coverage ratio in 2022 to 57.15, suggesting a slight weakening in the company's ability to cover interest costs from its operating income. Subsequently, in 2023, the interest coverage ratio increased to 190.41, showing a recovery in the company's ability to meet interest payments comfortably.
It is worth noting that the data for 2024 is not available (indicated by “—”), which prevents a comprehensive analysis of the trend. Overall, the varying interest coverage ratios indicate fluctuations in EPAM Systems Inc's financial health and their ability to service interest expenses with operating income over the years. It would be important to monitor future financial reports to assess the company's interest coverage sustainability.
Peer comparison
Dec 31, 2024