ExlService Holdings Inc (EXLS)
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 | 263,620 | 251,274 | 198,785 | 154,169 | 126,292 |
| Interest expense | US$ in thousands | 19,256 | 13,180 | 8,252 | 7,561 | 11,190 |
| Interest coverage | 13.69 | 19.06 | 24.09 | 20.39 | 11.29 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $263,620K ÷ $19,256K
= 13.69
The interest coverage ratio for ExlService Holdings Inc has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations effectively.
As of December 31, 2020, the interest coverage ratio was 11.29, suggesting that the company generated operating income 11.29 times higher than its interest expenses. This indicates a solid ability to cover interest payments.
By December 31, 2021, the interest coverage ratio improved significantly to 20.39, showing an even stronger capacity to meet interest obligations. This improvement indicates improved financial health and operational efficiency.
The trend continued to exhibit strength as of December 31, 2022, with the interest coverage ratio further increasing to 24.09. This robust ratio suggests that the company's profitability and cash flow generation remained strong relative to its interest costs.
However, there was a slight decline in the interest coverage ratio by December 31, 2023, to 19.06. Although the ratio decreased, it still reflects a healthy ability to cover interest expenses comfortably.
As of December 31, 2024, the interest coverage ratio decreased further to 13.69, indicating a relative decline in the company's ability to cover interest payments compared to the previous years. Despite the decrease, the ratio remains at a level that signifies ExlService Holdings Inc's ability to meet its interest obligations.
Overall, the trend in ExlService Holdings Inc's interest coverage ratio demonstrates a generally positive financial position with the ability to manage its interest expenses effectively.
Peer comparison
Dec 31, 2024