ExlService Holdings Inc (EXLS)

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 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 267,903 255,857 247,894 254,307 251,274 240,150 232,692 213,303 198,785 189,600 168,129 159,062 154,169 157,317 162,340 138,318 126,293 111,201 101,590 105,304
Interest expense (ttm) US$ in thousands 19,256 17,295 15,174 13,086 13,180 13,462 12,499 10,761 8,252 5,577 4,945 5,963 7,561 9,411 10,229 10,592 11,190 11,569 12,121 13,102
Interest coverage 13.91 14.79 16.34 19.43 19.06 17.84 18.62 19.82 24.09 34.00 34.00 26.67 20.39 16.72 15.87 13.06 11.29 9.61 8.38 8.04

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $267,903K ÷ $19,256K
= 13.91

The interest coverage ratio of ExlService Holdings Inc has shown a generally positive trend over the reporting periods from March 31, 2020, to December 31, 2024. The ratio has increased steadily from 8.04 on March 31, 2020, to a peak of 34.00 on June 30, 2022, and September 30, 2022. This substantial improvement indicates the company's ability to comfortably meet its interest obligations using its operating income.

However, there was a notable decline in the interest coverage ratio in the subsequent periods, with a decrease to 13.91 on December 31, 2024, from the previous highs. This reduction suggests a potential decrease in the company's ability to cover interest expenses with its earnings in the latter part of the reporting period.

Overall, the interest coverage ratio of ExlService Holdings Inc demonstrates a strong performance, with periods of significant improvement followed by a slight decline towards the end of the analyzed period. It is essential for stakeholders to monitor the trend in interest coverage ratio to assess the company's financial health and ability to service its debt obligations effectively.