Shutterstock (SSTK)

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	68,708	57,685	56,728	44,777	68,400	73,923	85,416	102,075	93,624	100,571	94,055	101,906	108,106	121,105	128,283	117,603	85,266	63,476	37,312	17,837
Interest expense (ttm)	US$ in thousands	10,561	6,144	2,255	2,187	1,856	1,977	1,854	1,566	1,359	668	229	24	0	0	0	0	0	0	0	0
Interest coverage		6.51	9.39	25.16	20.47	36.85	37.39	46.07	65.18	68.89	150.56	410.72	4,246.08	—	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $68,708K ÷ $10,561K
= 6.51

Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. In the case of Shutterstock, the interest coverage ratio for the past few quarters shows a mixed trend.

From March 31, 2022, to June 30, 2023, the interest coverage ratio was relatively high, indicating that the company generated significant operating income compared to its interest expenses during this period. This could be a positive sign of financial stability.

However, from September 30, 2023, onwards, the interest coverage ratio started to decline, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. A decreasing interest coverage ratio may raise concerns about the company's ability to manage its debt obligations efficiently.

By December 31, 2024, the interest coverage ratio had fallen to a relatively low level, suggesting that the company's operating income may not be sufficient to comfortably cover its interest expenses. This declining trend in the interest coverage ratio may require further attention and analysis to understand the underlying financial performance and sustainability of Shutterstock.