QuinStreet Inc (QNST)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-29,760	-33,373	-27,410	-25,388	-20,597	-17,664	-15,165	-13,557	-4,702	2,433	7,564	14,898	30,590	27,647	35,954	37,520	19,382	21,008	5,608	7,307
Interest expense (ttm)	US$ in thousands	680	679	573	675	790	884	974	1,028	1,075	1,166	1,190	1,230	1,296	1,077	953	823	696	739	658	579
Interest coverage		-43.76	-49.15	-47.84	-37.61	-26.07	-19.98	-15.57	-13.19	-4.37	2.09	6.36	12.11	23.60	25.67	37.73	45.59	27.85	28.43	8.52	12.62

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-29,760K ÷ $680K
= -43.76

The interest coverage ratio of QuinStreet Inc has fluctuated significantly over the specified periods. Specifically, the interest coverage ratio has been negative in many recent quarters, indicating that the company's operating income was insufficient to cover its interest expenses. This negative trend may raise concerns about the company's ability to meet its interest obligations using its current level of operating income.

However, it is notable that there are also instances where the interest coverage ratio was positive, indicating that the company generated enough operating income to cover its interest expenses comfortably. This positive trend in the past suggests that the company has had periods of strong financial performance in which it was more than capable of meeting its interest payment obligations.

Overall, the fluctuating nature of QuinStreet Inc's interest coverage ratio highlights the company's varying ability to generate sufficient income to cover its interest expenses over the periods analyzed. It is essential for stakeholders to closely monitor these fluctuations to assess the company's financial health and its ability to service its debt obligations effectively.