Qualys Inc (QLYS)

Interest coverage is an important financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. Qualys Inc's interest coverage has shown a significant fluctuation over the years based on the data provided.

As of December 31, 2020, the interest coverage ratio was very high at 11,338.44, indicating that Qualys Inc had a strong ability to cover its interest payments with its operating income. This exceptionally high ratio suggests a very low level of financial risk in terms of debt obligation.

In the subsequent years, the interest coverage ratio declined significantly. As of December 31, 2021, the ratio dropped to 52.16, and by December 31, 2022, it further decreased to 42.40. While these ratios still indicate that the company is generating enough operating income to cover its interest expenses, the declining trend suggests that Qualys Inc may be taking on more debt or experiencing a decrease in operating income.

The data for December 31, 2023, and December 31, 2024, shows missing values (—), which makes it difficult to draw conclusions about the company's interest coverage in those years. It's important for investors and analysts to closely monitor Qualys Inc's financial performance and debt levels to assess its ability to meet interest obligations in the future.

In conclusion, while Qualys Inc had an exceptionally high interest coverage ratio in 2020, the subsequent drop in the ratio over the following years indicates a potential shift in the company's financial leverage and profitability. Continued monitoring of these ratios will be crucial to evaluate the company's financial health and risk profile.

Peer comparison

Dec 31, 2024