Heidrick & Struggles International (HSII)
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 | 7,528 | 75,357 | 112,266 | 98,264 | -35,529 |
| Interest expense | US$ in thousands | — | — | 5,337 | 181 | 166,553 |
| Interest coverage | — | — | 21.04 | 542.90 | -0.21 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $7,528K ÷ $—K
= —
Heidrick & Struggles International's interest coverage ratio has shown significant fluctuations over the years. The interest coverage ratio for December 31, 2020, indicates a negative value of -0.21, which suggests that the company's operating income was insufficient to cover its interest expenses during that period.
On the other hand, the interest coverage ratio for December 31, 2021, improved substantially to 542.90, indicating a strong ability to cover interest payments with operating income. This suggests a drastic positive shift in the company's financial position compared to the previous year.
For December 31, 2022, the interest coverage ratio decreased to 21.04, which is still considered a healthy level and indicates that the company is generating enough operating income to cover its interest expenses comfortably.
The data for December 31, 2023, and December 31, 2024, shows placeholders ("\u2014") indicating that the values are not available for those years, which limits the ability to analyze the trend beyond 2022.
Overall, Heidrick & Struggles International's interest coverage ratio has shown varying levels of performance, with a notable improvement from 2020 to 2021, followed by a slight decrease in 2022. It will be essential for the company to sustain a healthy interest coverage ratio to ensure its ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2024