Liquidity Services Inc (LQDT)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	23,403	24,016	24,376	23,027	26,107	29,473	39,913	47,650	47,406	44,471	34,370	27,025	27,168	24,205	15,809	5,719	-3,897	-14,631	-19,390	-19,423
Interest expense (ttm)	US$ in thousands	5	4	8	10	11	18	19	20	21	23	22	22	22	19	21	21	23	18	466	912
Interest coverage		4,680.60	6,004.00	3,047.00	2,302.70	2,373.36	1,637.39	2,100.68	2,382.50	2,257.43	1,933.52	1,562.27	1,228.41	1,234.91	1,273.95	752.81	272.33	-169.43	-812.83	-41.61	-21.30

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $23,403K ÷ $5K
= 4,680.60

The interest coverage ratio of Liquidity Services Inc has fluctuated over the past several quarters. The interest coverage ratio measures a company's ability to pay interest on its debt obligations using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of servicing its debt.

In the most recent quarter, as of September 30, 2024, Liquidity Services Inc had an interest coverage ratio of 4,680.60. This indicates that the company had a strong ability to cover its interest expenses with its operating earnings during that period.

Looking at the trend over the past few quarters, there have been fluctuations in the interest coverage ratio. The ratio has shown both increases and decreases, suggesting some variability in the company's ability to cover its interest expenses. It is important to note that having a very high interest coverage ratio, as seen in the latest quarter, may indicate that the company is not utilizing its debt efficiently to maximize returns.

Overall, a detailed analysis of Liquidity Services Inc's interest coverage ratio reveals fluctuations in the company's ability to cover its interest expenses with its operating earnings. Additional analysis of the company's debt structure and overall financial health would provide further insight into its long-term sustainability.