Sonos Inc (SONO)
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 | 2,949 | -27,086 | -13,699 | 5,104 | -29,856 | -14,879 | 49,877 | 69,255 | 122,865 | 144,095 | 147,100 | 157,552 | 190,042 | 114,813 | 50,206 | -18,587 | -65,755 | -21,870 | 9,455 | 1,364 |
| Interest expense (ttm) | US$ in thousands | 481 | 649 | 679 | 732 | 752 | 674 | 612 | 552 | 451 | 332 | 424 | 591 | 824 | 1,107 | 1,299 | 1,487 | 1,772 | 2,038 | 2,280 | 2,498 |
| Interest coverage | 6.13 | -41.73 | -20.18 | 6.97 | -39.70 | -22.08 | 81.50 | 125.46 | 272.43 | 434.02 | 346.93 | 266.59 | 230.63 | 103.72 | 38.65 | -12.50 | -37.11 | -10.73 | 4.15 | 0.55 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,949K ÷ $481K
= 6.13
Interest coverage ratio reflects Sonos Inc's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
- The interest coverage ratio for Sonos Inc has fluctuated significantly over the years, ranging from negative figures to very high positive values.
- In June 2024, the interest coverage ratio improved to 6.13 compared to negative values in the previous two quarters, suggesting that Sonos Inc's operating income was sufficient to cover interest expenses during that period.
- The interest coverage ratio has shown a volatile trend with periods of extreme highs and lows, which may indicate fluctuations in operating income and/or interest expenses.
- The interest coverage ratio was exceptionally high in the past, notably in March 2022 and December 2022, indicating a very strong ability to cover interest payments with operating income during those periods.
- However, negative values in several quarters indicate that operating income was insufficient to cover interest expenses during those periods, raising concerns about the company's financial health and ability to meet its debt obligations.
- Overall, a thorough analysis of the underlying factors driving these fluctuations in the interest coverage ratio, such as changes in revenue, expenses, and debt levels, would be necessary to gain a deeper understanding of Sonos Inc's financial performance and stability.
Peer comparison
Jun 30, 2024