Match Group Inc (MTCH)
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 | — | 2,211 | 523,038 | 851,679 | 745,715 |
| Interest expense | US$ in thousands | 160,071 | 154,121 | 145,547 | 130,493 | 130,624 |
| Interest coverage | 0.00 | 0.01 | 3.59 | 6.53 | 5.71 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $160,071K
= 0.00
Match Group Inc's interest coverage ratio has shown fluctuations over the years. In 2020, the interest coverage ratio was reported at 5.71, indicating that the company generated enough operating income to cover its interest expenses nearly six times. This signifies a strong ability to meet its interest obligations from operating profits.
By the end of 2021, the interest coverage ratio improved to 6.53, suggesting that the company's ability to service its interest payments increased further. This signifies a positive trend in the company's financial health, indicating a stronger cushion against interest payment risks.
However, by the end of 2022, Match Group Inc's interest coverage ratio dropped to 3.59, showing a decrease in its ability to cover interest expenses from operating earnings. This could raise concerns about the company's financial leverage and its ability to manage debt effectively.
The situation worsened significantly by the end of 2023, with the interest coverage ratio plunging to 0.01, indicating that the company's operating income was barely sufficient to cover its interest expenses. This raises red flags regarding Match Group Inc's financial health and its ability to meet its interest obligations comfortably.
Moreover, the interest coverage ratio dropping to 0.00 by the end of 2024 suggests that Match Group Inc's operating earnings were insufficient to cover its interest expenses. This situation indicates a critical financial risk, as the company may face challenges in meeting its interest payments without significant improvements in its operating performance or debt management strategies.
Overall, the fluctuations in Match Group Inc's interest coverage ratio reflect varying levels of financial strength and risk over the years, highlighting the importance of monitoring this ratio to assess the company's ability to handle its interest obligations effectively.
Peer comparison
Dec 31, 2024