Match Group Inc (MTCH)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 916,896 | 763,277 | 730,353 | 505,476 | 515,005 | 640,289 | 650,244 | 870,239 | 851,679 | 832,344 | 811,921 | 797,601 | 380,995 | 349,762 | 318,372 | 290,866 | 574,448 | 527,019 | 513,384 | 622,405 |
| Interest expense (ttm) | US$ in thousands | 159,887 | 157,687 | 154,121 | 150,002 | 145,547 | 141,919 | 136,955 | 133,551 | 130,493 | 127,877 | 128,036 | 130,568 | 130,624 | 109,672 | 116,656 | 115,450 | 114,699 | 116,778 | 105,395 | 99,206 |
| Interest coverage | 5.73 | 4.84 | 4.74 | 3.37 | 3.54 | 4.51 | 4.75 | 6.52 | 6.53 | 6.51 | 6.34 | 6.11 | 2.92 | 3.19 | 2.73 | 2.52 | 5.01 | 4.51 | 4.87 | 6.27 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $916,896K ÷ $159,887K
= 5.73
Interest coverage is a financial ratio that shows a company's ability to cover interest expenses with its operating income. A higher interest coverage ratio indicates greater capacity to meet interest obligations. Looking at Match Group Inc.'s interest coverage over the past eight quarters, we can see fluctuations in the ratio. The interest coverage ratio ranged from a low of 3.37 in Q1 2023 to a high of 6.52 in Q1 2022.
The trend in interest coverage for Match Group Inc. seems somewhat volatile, with no clear increasing or decreasing pattern. Despite some fluctuations, the company generally maintained healthy interest coverage levels above 3, which is often considered a minimum threshold for adequate coverage. This suggests that Match Group Inc. has been able to consistently generate enough operating income to comfortably cover its interest expenses over the observed period. However, continued monitoring of the interest coverage ratio is essential to ensure the company's ability to meet its interest obligations in the long run.
Peer comparison
Dec 31, 2023