Match Group Inc (MTCH)
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 | 563,897 | 824,149 | 861,031 | 903,345 | 920,288 | 766,267 | 733,343 | 513,757 | 520,712 | 222,246 | 232,201 | 446,905 | 426,208 | 827,545 | 805,199 | 808,289 | 757,722 | 732,125 | 709,117 | 692,866 |
| Interest expense (ttm) | US$ in thousands | 160,071 | 160,925 | 161,185 | 160,889 | 159,887 | 157,687 | 154,121 | 150,002 | 145,547 | 141,919 | 136,955 | 133,551 | 130,493 | 139,213 | 150,552 | 163,980 | 177,008 | 176,784 | 175,727 | 167,286 |
| Interest coverage | 3.52 | 5.12 | 5.34 | 5.61 | 5.76 | 4.86 | 4.76 | 3.43 | 3.58 | 1.57 | 1.70 | 3.35 | 3.27 | 5.94 | 5.35 | 4.93 | 4.28 | 4.14 | 4.04 | 4.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $563,897K ÷ $160,071K
= 3.52
Match Group Inc's interest coverage ratio has shown fluctuating trends over the past few years. The ratio declined from 4.14 in March 2020 to a low of 1.57 in September 2022, indicating that the company's ability to cover interest expenses with its earnings decreased during this period. However, there was a partial recovery with the ratio increasing to 5.76 by December 2023.
Despite the improvement in the interest coverage ratio in late 2023, it began to decrease again, reaching a low of 1.70 in June 2022. This could be a concern for the company's ability to meet its interest obligations using its operating income.
In the most recent period, as of December 31, 2024, the interest coverage ratio stands at 3.52. While this is an improvement from the lows seen in 2022, it is still below the levels observed in 2023. This suggests that the company may still be somewhat constrained in its ability to cover interest payments comfortably.
Overall, Match Group Inc's interest coverage ratio has demonstrated volatility, and its ability to cover interest expenses with operating income has shown fluctuations over the years. Investors and stakeholders may need to closely monitor the company's financial performance to assess its ability to manage interest obligations effectively.
Peer comparison
Dec 31, 2024