N-Able Inc (NABL)

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 84,301 74,578 49,277 32,064 32,993
Interest expense US$ in thousands 30,031 30,252 18,852 20,472 28,137
Interest coverage 2.81 2.47 2.61 1.57 1.17

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $84,301K ÷ $30,031K
= 2.81

The interest coverage ratio for N-Able Inc has shown an improving trend over the past five years, starting at 1.17 in December 31, 2020 and reaching 2.81 by December 31, 2024. This indicates that the company's ability to cover its interest expenses with its operating earnings has strengthened over time. A higher interest coverage ratio suggests that N-Able Inc is in a better position to meet its interest obligations, signaling a lower risk of default on its debt. The steady increase in the interest coverage ratio reflects positively on the company's financial health and its ability to manage its debt obligations effectively.