MaxLinear Inc (MXL)
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 | -223,352 | -53,108 | 183,966 | 60,865 | -101,900 |
| Interest expense | US$ in thousands | 10,874 | 10,702 | 9,768 | 12,996 | 12,952 |
| Interest coverage | -20.54 | -4.96 | 18.83 | 4.68 | -7.87 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-223,352K ÷ $10,874K
= -20.54
MaxLinear Inc's interest coverage ratio has shown significant fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.
In 2020, the interest coverage ratio was negative at -7.87, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health. However, by the end of 2021, the ratio improved to 4.68, suggesting an increase in the company's ability to pay off its interest obligations using its operating income.
By the end of 2022, the interest coverage ratio further improved to 18.83, showing a strong ability to cover interest expenses with operating income. However, in 2023, the ratio deteriorated to -4.96, falling back into negative territory and indicating potential financial distress.
The situation worsened in 2024, with an interest coverage ratio of -20.54, signaling a severe inability to cover interest payments from operating income. Overall, the fluctuating trend in MaxLinear Inc's interest coverage ratio highlights the company's varying financial performance and its challenges in meeting interest obligations in a sustainable manner. Further analysis would be needed to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024