Shutterstock (SSTK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 68,400 | 93,624 | 108,106 | 85,266 | 20,155 |
| Interest expense | US$ in thousands | 1,856 | 1,336 | 67 | 7,324 | 54,676 |
| Interest coverage | 36.85 | 70.08 | 1,613.52 | 11.64 | 0.37 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $68,400K ÷ $1,856K
= 36.85
The interest coverage ratio for Shutterstock Inc has shown a decreasing trend over the past three years, with values of 36.85 in 2023, 84.05 in 2022, and data missing for 2021, 2020, and 2019. This indicates that the company's ability to cover its interest expenses with its earnings has declined over time. A decreasing interest coverage ratio may suggest a higher financial risk for the company, as it may be less able to meet its interest obligations from its operating profits. Further analysis of the company's financial health and future cash flow prospects is recommended to fully assess the implications of this trend.
Peer comparison
Dec 31, 2023