Genpact Limited (G)
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 | 630,857 | 502,151 | 508,999 | 438,717 | 429,376 |
| Interest expense | US$ in thousands | 1,332 | 1,532 | 2,538 | 2,454 | 2,997 |
| Interest coverage | 473.62 | 327.77 | 200.55 | 178.78 | 143.27 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $630,857K ÷ $1,332K
= 473.62
The interest coverage ratio for Genpact Ltd has consistently shown a positive trend over the past five years. This ratio measures the company's ability to meet its interest obligations with its operating income. Genpact's interest coverage ratio has steadily increased from 9.96 in 2019 to 13.06 in 2023, indicating an improved ability to cover its interest expenses with operating earnings.
A ratio above 1 indicates that the company is generating enough operating income to cover its interest payments. Genpact's consistently high interest coverage ratios over the years suggest that the company has been effectively managing its interest expenses relative to its operating earnings. This reflects positively on the company's financial health and ability to service its debt obligations.
Overall, Genpact Ltd's interest coverage ratios demonstrate a strong financial position and a healthy ability to meet its interest obligations, which is essential for investors and creditors assessing the company's debt repayment capability.
Peer comparison
Dec 31, 2023