Shutterstock (SSTK)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	20,155	29,991	33,507	36,062
Interest expense (ttm)	US$ in thousands	1,856	1,977	1,854	1,566	1,359	668	229	24	0	0	0	0	0	0	0	0	0	2,003	2,003	2,003
Interest coverage		36.85	37.39	46.07	65.18	68.89	150.56	410.72	4,246.08	—	—	—	—	—	—	—	—	—	14.97	16.73	18.00

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $68,400K ÷ $1,856K
= 36.85

Based on the data provided for Shutterstock Inc's interest coverage ratio, it is observed that the company has shown strong and improving ability to cover its interest expenses with operating profits in recent quarters. The interest coverage ratio has been consistently high, indicating a healthy financial position with ample earnings to cover interest payments.

During Q4 2022 and Q3 2022, the interest coverage ratio was notably high at 84.05 and 170.75 respectively, reflecting a robust financial performance. The ratio peaked in Q2 2022 at an impressive 681.56, underscoring the company's significant earnings relative to its interest obligations during that period.

In the more recent quarters of Q1 2023 and Q2 2023, the interest coverage ratio remained strong at 75.89 and 55.39, respectively. This signifies that the company continued to generate sufficient operating income to cover its interest expenses comfortably.

Overall, the consistent high levels of interest coverage ratios demonstrate Shutterstock Inc's ability to manage its debt obligations effectively and suggest a low risk of default. This positive trend indicates a stable financial position and sound financial management within the company.