Liveramp Holdings Inc (RAMP)
Interest coverage
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,459 | 15,445 | 22,343 | 29,771 | -3,416 | -37,430 | -66,902 | -94,151 | -79,775 | -81,355 | -72,847 | -64,543 | -88,839 | -90,839 | -111,935 | -120,920 | -107,832 | -133,298 | -156,248 | -177,279 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 0 | 0 | 420 | 12,063 | 36,058 | 36,837 | 36,647 | 25,004 | 1,009 | 230 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest coverage | — | — | — | — | -8.13 | -3.10 | -1.86 | -2.56 | -2.18 | -3.25 | -72.20 | -280.62 | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,459K ÷ $0K
= —
The interest coverage ratio for Liveramp Holdings Inc shows a negative trend over the quarters provided in the data. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A negative interest coverage ratio indicates that the company's EBIT is insufficient to cover its interest expenses.
Looking at the data, we see that the interest coverage ratio for Liveramp Holdings Inc was negative in the last several quarters, with the ratio improving slightly from -280.62 in March 2022 to -8.13 in December 2023. However, it should be noted that even with this improvement, the company's earnings are still not enough to cover its interest payments.
A negative interest coverage ratio raises concerns about the company's financial health and its ability to manage its debt obligations. It may indicate a high level of debt relative to earnings or declining profitability. Investors and creditors typically prefer to see a positive interest coverage ratio as it signifies that the company has sufficient earnings to cover its interest payments.
Liveramp Holdings Inc should focus on improving its profitability and operational efficiency to increase its EBIT and strengthen its ability to cover its interest expenses in the future. Additionally, the company may need to review its debt levels and interest rates to better manage its financial obligations and overall risk profile.
Peer comparison
Dec 31, 2024