Grid Dynamics Holdings Inc (GDYN)
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 | — | -4,426 | -20,453 | 50 | -15,448 |
| Interest expense | US$ in thousands | — | — | 555 | 2,502 | 2,908 |
| Interest coverage | — | — | -36.85 | 0.02 | -5.31 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio is a key financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to fulfill these obligations, while a lower ratio may signal potential financial distress.
Based on the data provided for Grid Dynamics Holdings Inc, the interest coverage ratio fluctuated significantly over the years. In December 2020, the ratio was at -5.31, suggesting that the company's operating earnings were insufficient to cover its interest expenses, potentially indicating financial strain.
By December 2021, the interest coverage ratio improved to 0.02, but still remained very close to breakeven. This could indicate ongoing challenges in meeting interest payments.
The ratio further deteriorated in December 2022 to -36.85, reflecting a significant decline in the company's ability to cover interest expenses with its operating income.
The absence of data for December 31, 2023, and December 31, 2024, prevents a complete analysis for those periods.
Overall, the trend in Grid Dynamics Holdings Inc's interest coverage ratio shows fluctuations and periods of financial vulnerability, highlighting the importance of closely monitoring the company's financial performance and debt servicing capabilities.
Peer comparison
Dec 31, 2024