Rambus Inc (RMBS)
Interest coverage
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 | Jun 30, 2019 | Mar 31, 2019 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 188,618 | 142,321 | 38,643 | 63,010 | -5,952 | -12,332 | -8,787 | -30,605 | 33,992 | 15,595 | -772 | -23,652 | -26,134 | -22,640 | -29,827 | -53,501 | -74,522 | -67,164 | -62,190 | -43,854 |
Interest expense (ttm) | US$ in thousands | 1,490 | 1,597 | 1,678 | 1,650 | 1,874 | 4,127 | 6,362 | 8,697 | 10,706 | 10,588 | 10,502 | 10,399 | 10,340 | 10,271 | 10,182 | 10,136 | 9,852 | 10,553 | 12,032 | 14,132 |
Interest coverage | 126.59 | 89.12 | 23.03 | 38.19 | -3.18 | -2.99 | -1.38 | -3.52 | 3.18 | 1.47 | -0.07 | -2.27 | -2.53 | -2.20 | -2.93 | -5.28 | -7.56 | -6.36 | -5.17 | -3.10 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $188,618K ÷ $1,490K
= 126.59
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments. Looking at the data for Rambus Inc., we observe a consistent improvement in interest coverage over the quarters. In Q4 2023, the interest coverage ratio stands at 61.41, showcasing a robust ability to meet interest obligations. This is a significant improvement compared to the ratios from previous quarters, indicating better financial health and efficiency in managing its interest expenses. Additionally, the upward trend in the interest coverage ratio suggests that Rambus Inc. has been effectively managing its debt and generating sufficient operating income to cover interest payments. Overall, the increasing interest coverage ratio reflects positively on the company's financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023