Godaddy Inc (GDDY)
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 | 926,500 | 866,600 | 782,100 | 709,100 | 615,100 | 554,300 | 522,200 | 525,700 | 549,600 | 479,900 | 462,300 | 414,200 | 381,800 | 390,200 | 360,700 | -387,800 | -408,300 | -417,200 | -422,500 | 266,300 |
| Interest expense (ttm) | US$ in thousands | 181,700 | 187,200 | 168,400 | 174,500 | 179,000 | 177,600 | 169,200 | 158,500 | 146,300 | 136,300 | 133,200 | 130,900 | 126,000 | 120,600 | 112,000 | 98,800 | 91,300 | 86,200 | 85,200 | 88,900 |
| Interest coverage | 5.10 | 4.63 | 4.64 | 4.06 | 3.44 | 3.12 | 3.09 | 3.32 | 3.76 | 3.52 | 3.47 | 3.16 | 3.03 | 3.24 | 3.22 | -3.93 | -4.47 | -4.84 | -4.96 | 3.00 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $926,500K ÷ $181,700K
= 5.10
The interest coverage ratio for Godaddy Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to cover interest expenses with its operating income.
Beginning with a ratio of 3.00 on March 31, 2020, the interest coverage fell sharply to -4.96 on June 30, 2020, indicating that the company's operating income was insufficient to cover its interest expenses during that period. The negative ratios continued for the next several quarters, showing a challenging financial position in terms of meeting interest obligations.
Subsequently, the interest coverage ratio improved, turning positive on June 30, 2021, at 3.22. This positive trend continued with ratios ranging between 3.03 and 5.10 from December 31, 2021, to December 31, 2024, suggesting an enhanced ability to cover interest expenses with operating income.
Overall, the trend in the interest coverage ratio for Godaddy Inc indicates fluctuations and challenges during the earlier periods but a more stable and improved position in recent quarters, with the company demonstrating better ability to meet its interest obligations.
Peer comparison
Dec 31, 2024