ExlService Holdings Inc (EXLS)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	96,443	73,466	69,004	70,584
Interest expense (ttm)	US$ in thousands	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	13,612	14,134	13,429	10,271
Interest coverage		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	7.09	5.20	5.14	6.87

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $251,274K ÷ $13,180K
= 19.06

Interest coverage measures a company's ability to meet its interest payments on outstanding debt. ExlService Holdings Inc has maintained a strong interest coverage ratio over the past eight quarters, ranging from 17.51 to 34.35. The ratio peaked in Q2 2022 at 34.35, indicating the company's ability to cover its interest payments over 34 times with its operating income. However, the ratio has since declined but remains consistently above 15, reflecting a healthy cushion for ExlService Holdings Inc to meet its interest obligations comfortably. This stability in interest coverage suggests that the company is effectively managing its debt and generating sufficient income to cover its interest expenses.