Godaddy Inc (GDDY)

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	582,000	529,000	490,000	487,100	502,100	487,700	485,000	448,700	379,100	347,500	310,800	-429,100	-405,100	-419,400	-416,200	246,400	217,100	200,300	141,200	173,100
Interest expense (ttm)	US$ in thousands	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	92,100	95,300	97,400	99,000
Interest coverage		3.25	2.98	2.90	3.07	3.43	3.58	3.64	3.43	3.01	2.88	2.78	-4.34	-4.44	-4.87	-4.88	2.77	2.36	2.10	1.45	1.75

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $582,000K ÷ $179,000K
= 3.25

The interest coverage ratio is a key financial metric that reflects a company's ability to meet its interest obligations on its debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.

Based on the data provided for Godaddy Inc's interest coverage ratios over the past eight quarters, we can see that the company has maintained relatively consistent levels of interest coverage, ranging from 3.14 to 3.80. This indicates that Godaddy Inc has consistently generated sufficient earnings to cover its interest expenses, with a ratio greater than 1 generally considered favorable.

The trend in Godaddy Inc's interest coverage ratios shows stability over the quarters analyzed, with slight fluctuations within a narrow range. This suggests that the company has been effectively managing its debt and maintaining a healthy level of operating income to cover its interest payments.

Overall, the consistent and relatively high interest coverage ratios for Godaddy Inc demonstrate the company's ability to comfortably meet its interest obligations and indicate a strong financial position in terms of debt servicing capacity.