MaxLinear Inc (MXL)
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 | -53,108 | 183,966 | 60,865 | -101,900 | -21,351 |
| Interest expense | US$ in thousands | 10,702 | 9,768 | 12,996 | 12,952 | 11,133 |
| Interest coverage | -4.96 | 18.83 | 4.68 | -7.87 | -1.92 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-53,108K ÷ $10,702K
= -4.96
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a better ability to cover interest expenses.
MaxLinear Inc's interest coverage ratio has fluctuated significantly over the past five years. In 2023, the ratio was -3.44, indicating that the company's operating income was insufficient to cover its interest expenses.
In the previous year, 2022, the interest coverage ratio was notably higher at 19.46, suggesting a strong ability to meet interest obligations. This improvement may have been influenced by increased operating income or reduced interest expenses.
In 2021, the interest coverage ratio was 5.22, reflecting a moderate ability to cover interest expenses. However, in 2020 and 2019, the ratios were negative, indicating that the company's operating income was not enough to cover its interest payments during those years.
The fluctuating trend in MaxLinear Inc's interest coverage ratio raises concerns about its financial stability and ability to service its debt. It is important for stakeholders to closely monitor this ratio to assess the company's financial health and ability to fulfill its debt obligations.
Peer comparison
Dec 31, 2023