Sonos Inc (SONO)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -34,023 | 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 |
| Interest expense (ttm) | US$ in thousands | 441 | 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 |
| Interest coverage | -77.15 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-34,023K ÷ $441K
= -77.15
Interest coverage is a key financial ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally considered healthier as it suggests that the company can easily meet its interest obligations.
For Sonos Inc, the interest coverage ratio has fluctuated significantly over the past few quarters. It was notably negative in some periods, such as -77.15 in September 2024 and -41.73 in March 2024, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.
On the positive side, the interest coverage ratio improved significantly in some quarters, such as 434.02 in March 2022 and 346.93 in December 2021, where the company's operating income was substantially higher than its interest expenses.
Overall, the trend in Sonos Inc's interest coverage ratio has been volatile, suggesting potential variability in the company's ability to cover its interest payments from its operating income. Investors and stakeholders may closely monitor this ratio to assess the company's financial health and risk of default on its debt obligations.
Peer comparison
Sep 30, 2024