Nextracker Inc. Class A Common Stock (NXT)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	621,817	169,926	65,108	158,531
Interest expense	US$ in thousands	13,096	13,820	1,833	799	502
Interest coverage		0.00	44.99	92.70	81.49	315.80

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $13,096K
= 0.00

The interest coverage ratio for Nextracker Inc. Class A Common Stock has shown a significant decline over the past few years. In March 2021, the interest coverage ratio stood at a robust 315.80, indicating the company's ability to cover its interest expenses substantially. However, by March 2025, the interest coverage ratio had plummeted to 0.00, signaling a potential issue with the company's ability to meet its interest obligations using its operating income alone.

This downward trend in the interest coverage ratio raises concerns about Nextracker Inc.'s financial health and solvency. A declining interest coverage ratio could indicate that the company may have difficulties servicing its debt obligations in the future, potentially leading to financial distress.

It is essential for investors and stakeholders to closely monitor Nextracker Inc.'s financial performance and debt management practices to ensure the company's long-term viability and sustainability. Further analysis of the company's financial statements and debt structure would be necessary to fully assess the impact of the declining interest coverage ratio on its overall financial health.