ExlService Holdings Inc (EXLS)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 251,274 | 198,785 | 154,169 | 126,292 | 96,443 |
| Interest expense | US$ in thousands | 13,180 | 8,252 | 7,561 | 11,190 | 13,612 |
| Interest coverage | 19.06 | 24.09 | 20.39 | 11.29 | 7.09 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $251,274K ÷ $13,180K
= 19.06
ExlService Holdings Inc's interest coverage ratio has shown a generally positive trend over the past five years. The ratio has consistently improved from 6.23 in 2019 to 18.13 in 2023. This trend indicates that the company's ability to cover its interest expenses with its operating income has strengthened over the years. A higher interest coverage ratio generally signifies a company's greater capacity to meet its interest obligations. ExlService Holdings Inc's significant improvement in interest coverage ratio reflects enhanced financial stability and reduced risk of default due to interest payment obligations.
Peer comparison
Dec 31, 2023