Progyny Inc (PGNY)
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 | 67,455 | 62,184 | 23,341 | 32,340 | 8,348 |
| Interest expense | US$ in thousands | — | — | 814 | 461 | 121 |
| Interest coverage | — | — | 28.67 | 70.15 | 68.99 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $67,455K ÷ $—K
= —
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Progyny Inc's interest coverage has been relatively strong over the years based on the provided data. In 2020, the interest coverage ratio was 68.99, indicating that the company generated nearly 69 times more operating income than the interest expenses incurred during that period. This ratio improved slightly to 70.15 in 2021, showcasing the company's continued ability to comfortably meet its interest obligations.
However, there was a noticeable decline in the interest coverage ratio in 2022, dropping to 28.67. While this ratio is still above 1, signifying that Progyny Inc is able to cover its interest expense, the decrease suggests a potential strain on the company's operating income relative to its interest costs that year. Unfortunately, data is unavailable for the interest coverage ratio in 2023 and 2024, making it challenging to assess the trend beyond 2022.
Overall, Progyny Inc's interest coverage has shown resilience in recent years, with strong ratios in 2020 and 2021. However, the decrease in 2022 warrants further monitoring to ensure the company's ability to effectively manage its interest expenses going forward.
Peer comparison
Dec 31, 2024