Match Group Inc (MTCH)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 916,896 | 515,005 | 851,679 | 745,715 | 645,454 |
| Interest expense | US$ in thousands | 159,887 | 145,547 | 130,493 | 130,624 | 111,008 |
| Interest coverage | 5.73 | 3.54 | 6.53 | 5.71 | 5.81 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $916,896K ÷ $159,887K
= 5.73
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratio of Match Group Inc. over the past five years, we observe a fluctuating trend. In 2023, the interest coverage ratio improved to 5.73 from 3.54 in 2022, suggesting that the company's ability to cover its interest expenses with its EBIT strengthened significantly. This increase indicates that Match Group Inc. had more earnings available to cover interest payments in 2023 compared to the previous year.
Furthermore, the interest coverage ratio in 2023 of 5.73 is higher than the ratios in 2021 (6.53), 2020 (4.27), and 2019 (3.81), indicating a positive trend in the company's ability to service its debt obligations over the years. This improvement reflects positively on Match Group Inc.'s financial health and ability to meet its interest payments comfortably.
Overall, the upward trend in Match Group Inc.'s interest coverage ratio suggests an enhancement in the company's capacity to handle its interest expenses with its operating income, indicating a potentially lower financial risk and greater financial stability in the future.
Peer comparison
Dec 31, 2023