MaxLinear Inc (MXL)

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	-53,074	29,653	115,761	164,198	184,013	171,886	148,290	98,496	60,875	5,918	-53,067	-72,365	-101,908	-86,031	-52,777	-32,742	-21,351	-23,597	-34,087	-30,826
Interest expense (ttm)	US$ in thousands	10,702	10,085	10,081	9,906	9,768	9,876	9,814	11,139	12,996	15,320	16,240	14,682	12,952	10,815	9,964	10,634	11,133	11,740	12,495	13,336
Interest coverage		-4.96	2.94	11.48	16.58	18.84	17.40	15.11	8.84	4.68	0.39	-3.27	-4.93	-7.87	-7.95	-5.30	-3.08	-1.92	-2.01	-2.73	-2.31

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-53,074K ÷ $10,702K
= -4.96

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

MaxLinear Inc's interest coverage ratio fluctuated significantly over the past eight quarters, ranging from -3.44 to 19.46. The negative interest coverage in the most recent quarter suggests that the company's earnings were not sufficient to cover its interest expenses. This may raise concerns about the company's financial health and its ability to meet debt obligations.

However, the positive interest coverage ratios in the preceding quarters indicate an improved capacity to cover interest expenses. The ratios showed an increasing trend from the first quarter of 2022 to the second quarter of 2023, reaching a peak of 19.46 in the fourth quarter of 2023. This suggests that the company's earnings were more than adequate to cover interest costs during this period.

Overall, the fluctuating interest coverage ratios indicate variability in MaxLinear Inc's ability to cover its interest expenses. It would be important to assess the company's profitability and cash flow to understand the factors driving these fluctuations and to determine the sustainability of its ability to meet interest obligations in the future.