Godaddy Inc (GDDY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 932,900 | 650,300 | 549,600 | 460,000 | -400,800 |
| Interest expense | US$ in thousands | 158,300 | 179,000 | 146,300 | 126,000 | 91,300 |
| Interest coverage | 5.89 | 3.63 | 3.76 | 3.65 | -4.39 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $932,900K ÷ $158,300K
= 5.89
The interest coverage ratio for Godaddy Inc has shown significant improvement over the years, reflecting the company's ability to meet its interest obligations with its earnings. In 2020, the interest coverage ratio was negative at -4.39, indicating potential difficulties in covering interest expenses with operating income. However, the company managed to turn this around rapidly in the following years, with ratios of 3.65 in 2021, 3.76 in 2022, and 3.63 in 2023. This suggests a healthy improvement in the company's ability to service its debt. Furthermore, the interest coverage ratio increased notably to 5.89 by the end of 2024, indicating even stronger financial health and a more comfortable ability to meet interest payments from its earnings. Overall, the trend in Godaddy Inc's interest coverage ratio demonstrates a positive trajectory, highlighting the company's improving financial performance and debt servicing capacity.
Peer comparison
Dec 31, 2024