Liveramp Holdings Inc (RAMP)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	11,404	-125,800	-65,538	-120,548	-180,922
Interest expense	US$ in thousands	—	12,350	28,984	2,967	11,134
Interest coverage		—	-10.19	-2.26	-40.63	-16.25

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $11,404K ÷ $—K
= —

Liveramp Holdings Inc's interest coverage ratio has shown variability over the past five years. The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company's ability to comfortably cover its interest expenses, while a lower ratio suggests potential challenges in meeting these obligations.

In the most recent fiscal year ending on March 31, 2023, Liveramp Holdings Inc had an interest coverage ratio of -10.19. This negative ratio implies that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial health and ability to service its debt obligations.

In the preceding years, the company's interest coverage ratios were also below 0, indicating persistent issues in meeting interest payments. The ratios for the fiscal years ending on March 31, 2022, and March 31, 2021, were -2.26 and -40.63, respectively. The significant negative ratio in 2021 suggests a substantial mismatch between earnings and interest expenses.

The interest coverage ratio for the fiscal year ending on March 31, 2020, was also negative at -16.25, further highlighting the historical challenges Liveramp Holdings Inc has faced in covering its interest costs.

Overall, the trend in Liveramp Holdings Inc's interest coverage ratios over the past five years indicates a concerning pattern of insufficient earnings to cover interest expenses, signaling heightened financial risk associated with its debt obligations. Investors and stakeholders should closely monitor the company's performance and debt management strategies to assess its ability to improve its interest coverage ratio in the future.