MaxLinear Inc (MXL)
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 | -220,096 | -218,645 | -190,705 | -152,054 | -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 |
| Interest expense (ttm) | US$ in thousands | 10,874 | 10,981 | 11,041 | 10,926 | 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 |
| Interest coverage | -20.24 | -19.91 | -17.27 | -13.92 | -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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-220,096K ÷ $10,874K
= -20.24
MaxLinear Inc's interest coverage ratio experienced significant fluctuations over the period analyzed. The company initially had negative interest coverage, indicating its operating income was insufficient to cover interest expenses. However, from September 2021 onwards, the interest coverage ratio started to improve, reaching positive values.
The interest coverage ratio continued to improve steadily, peaking at 18.84 as of December 31, 2022, suggesting that the company's operating income was more than sufficient to cover its interest payments. However, the ratio declined in the following periods, dropping below zero again by the end of December 2023.
The downward trend continued, with the interest coverage ratio falling further into negative territory by June 30, 2024. The decreasing trend raises concerns about the company's ability to meet its interest obligations using its current level of operating income. Additional analysis and monitoring of the company's financial performance and debt repayment capacity would be necessary to assess the sustainability of its interest coverage in the future.
Peer comparison
Dec 31, 2024