Heidrick & Struggles International (HSII)
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 | 7,528 | 53,037 | 56,092 | 73,860 | 75,357 | 73,339 | 79,524 | 99,805 | 112,266 | 109,028 | 114,048 | 108,888 | 98,264 | 90,194 | 18,619 | -34,073 | -35,529 | -29,772 | 22,933 | 65,272 |
| Interest expense (ttm) | US$ in thousands | 0 | 5,058 | 5,058 | 5,058 | 10,116 | 8,731 | 9,986 | 10,285 | 7,588 | 4,010 | 2,845 | 2,581 | 302 | 546 | 636 | 940 | 1,537 | 2,039 | 2,678 | 2,751 |
| Interest coverage | — | 10.49 | 11.09 | 14.60 | 7.45 | 8.40 | 7.96 | 9.70 | 14.80 | 27.19 | 40.09 | 42.19 | 325.38 | 165.19 | 29.28 | -36.25 | -23.12 | -14.60 | 8.56 | 23.73 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,528K ÷ $0K
= —
Heidrick & Struggles International's interest coverage ratio has fluctuated significantly over the periods provided. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt.
From March 31, 2020, to September 30, 2021, the interest coverage ratio exhibited a downward trend, with negative values recorded in the latter half of 2020 and early 2021. This indicates that during these periods, the company's operating income was insufficient to cover its interest expenses.
However, from December 31, 2021, onwards, there was a remarkable improvement in the interest coverage ratio. A substantial increase was observed, with the ratio reaching high levels by December 31, 2021, and maintaining a strong position through June 30, 2024.
Overall, the upward trend in the interest coverage ratio from late 2021 indicates an improvement in Heidrick & Struggles International's ability to cover its interest obligations with its operating income. This positive trend suggests a healthier financial position and better debt servicing capability for the company during the latter periods covered in the data.
Peer comparison
Dec 31, 2024