Grid Dynamics Holdings Inc (GDYN)

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	-1,801	4,423	2,430	3,420	2,970	-10,127	-13,570	-26,379	-20,184	-17,627	-12,357	502	-1,479	-2,756	-6,341	-10,704	-16,204	-7,727	-527	7,288
Interest expense (ttm)	US$ in thousands	1,682	3,364	3,364	3,364	4,635	2,953	4,403	5,029	2,776	2,776	1,326	700	0	0	0	0	5	10	10	10
Interest coverage		-1.07	1.31	0.72	1.02	0.64	-3.43	-3.08	-5.25	-7.27	-6.35	-9.32	0.72	—	—	—	—	-3,240.80	-772.70	-52.70	728.80

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,801K ÷ $1,682K
= -1.07

Grid Dynamics Holdings Inc's interest coverage ratio has been fluctuating significantly over the past few years. The ratio indicates the company's ability to meet its interest obligations from its operating income.

Between March 31, 2020, and December 31, 2020, the interest coverage ratio deteriorated sharply, reaching negative values. This signifies that the company's earnings were insufficient to cover its interest expenses during this period.

Subsequently, the interest coverage ratio remained negative until June 30, 2022, indicating ongoing challenges in generating enough operating income to cover interest payments.

From March 31, 2023, onwards, there was a gradual improvement in the interest coverage ratio, although it remained relatively low until December 31, 2024, when the ratio turned negative again.

Overall, Grid Dynamics Holdings Inc has faced significant fluctuations in its interest coverage ratio, indicating potential financial strain and the need for close monitoring of its ability to meet interest obligations in the future.