Insight Enterprises Inc (NSIT)
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 | 398,283 | 469,316 | 476,646 | 459,186 | 437,006 | 414,855 | 406,783 | 420,000 | 419,907 | 399,114 | 393,656 | 351,364 | 330,427 | 320,914 | 297,775 | 289,988 | 286,177 | 269,155 | 259,727 | 253,878 |
| Interest expense (ttm) | US$ in thousands | 58,036 | 52,734 | 48,118 | 43,333 | 41,124 | 42,099 | 41,799 | 41,777 | 39,497 | 39,796 | 38,415 | 38,615 | 40,516 | 40,318 | 39,101 | 39,737 | 41,594 | 43,057 | 42,029 | 36,411 |
| Interest coverage | 6.86 | 8.90 | 9.91 | 10.60 | 10.63 | 9.85 | 9.73 | 10.05 | 10.63 | 10.03 | 10.25 | 9.10 | 8.16 | 7.96 | 7.62 | 7.30 | 6.88 | 6.25 | 6.18 | 6.97 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $398,283K ÷ $58,036K
= 6.86
Insight Enterprises Inc's interest coverage ratio has shown a generally positive trend over the analyzed period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.
The interest coverage ratio has improved from 6.97 on March 31, 2020, to 6.86 on December 31, 2024. This indicates that the company's operating income is sufficient to cover its interest expenses, with the ratio consistently above 1, suggesting a healthy ability to meet interest payments.
The ratio fluctuated during the period, reaching its lowest point of 6.18 on June 30, 2020, and its highest point of 10.63 on two occasions, December 31, 2022, and December 31, 2023. These fluctuations may reflect changes in the company's operating income and interest expenses.
Overall, the increasing trend in the interest coverage ratio indicates an improvement in the company's ability to service its debt obligations with operating income, which can be seen as a positive indicator of financial health and stability. However, the fluctuations observed during the period should be further analyzed to understand the underlying reasons and assess the potential impact on the company's financial performance.
Peer comparison
Dec 31, 2024