Nextracker Inc. Class A Common Stock (NXT)

Interest coverage

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	464,965	732,501	716,959	670,194	583,980	357,026	267,216	212,596	168,485	135,480	93,924	74,531	65,907	99,912	124,388	145,841	158,532
Interest expense (ttm)	US$ in thousands	13,096	11,731	11,160	16,179	14,033	13,565	10,338	1,654	520	1,134	1,134	1,134	1,134	0	0	0	0
Interest coverage		35.50	62.44	64.24	41.42	41.61	26.32	25.85	128.53	324.01	119.47	82.83	65.72	58.12	—	—	—	—

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $464,965K ÷ $13,096K
= 35.50

The interest coverage ratio for Nextracker Inc. Class A Common Stock has fluctuated over the periods reported. It was not available from March 2021 to December 2021, indicating that the company may not have had enough operating income to cover its interest expenses during that time.

However, starting from March 2022, the interest coverage ratio improved significantly to 58.12 and continued to increase steadily through June 2023, reaching a high of 324.01. This demonstrates that the company's ability to cover its interest payments improved substantially during this period.

Subsequently, the interest coverage ratio decreased from June 2023 to September 2024, indicating a decline in the company's ability to cover its interest expenses with operating income. However, it remained above 1, suggesting that Nextracker Inc. was still able to meet its interest obligations during these periods.

Overall, the interest coverage ratio provides insight into the company's financial health and ability to manage its debt obligations. Investors and stakeholders may monitor this ratio to assess the company's financial risk and stability over time.