Genpact Limited (G)
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 | 702,061 | 674,619 | 658,662 | 645,731 | 630,857 | 595,876 | 561,024 | 513,387 | 502,151 | 486,325 | 487,773 | 514,993 | 508,999 | 510,127 | 502,480 | 455,941 | 438,717 | 445,182 | 434,124 | 449,962 |
| Interest expense (ttm) | US$ in thousands | 69,932 | 77,168 | 72,295 | 68,389 | 66,308 | 65,395 | 62,397 | 58,650 | 58,103 | 56,303 | 56,297 | 58,805 | 58,312 | 55,685 | 55,437 | 55,787 | 56,244 | 44,105 | 30,218 | 28,641 |
| Interest coverage | 10.04 | 8.74 | 9.11 | 9.44 | 9.51 | 9.11 | 8.99 | 8.75 | 8.64 | 8.64 | 8.66 | 8.76 | 8.73 | 9.16 | 9.06 | 8.17 | 7.80 | 10.09 | 14.37 | 15.71 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $702,061K ÷ $69,932K
= 10.04
The interest coverage ratio for Genpact Limited shows a declining trend from March 31, 2020, at 15.71 to December 31, 2024, at 10.04. This indicates that the company's ability to cover its interest expenses with its operating profit has been decreasing over the period under consideration. Despite fluctuations, the ratio has generally been above 1, suggesting that Genpact has been able to meet its interest obligations with relative ease. However, the decreasing trend in the interest coverage ratio may raise concerns about the company's future ability to service its debt obligations efficiently. A potential investor or creditor may find this trend concerning and may wish to conduct further analysis to assess the company's overall financial health and cash flow management capabilities.
Peer comparison
Dec 31, 2024