SolarWinds Corp (SWI)
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 | 178,280 | 161,439 | 150,373 | 135,040 | -165,964 | -795,187 | -819,579 | -857,977 | -599,320 | -10,288 | -32,871 | -20,583 | 4,234 | 46,921 | 85,746 | 69,137 | 82,561 | 77,750 | 79,862 | 130,518 |
| Interest expense (ttm) | US$ in thousands | 10,717 | 10,709 | 10,718 | 10,312 | 9,881 | 9,464 | 9,056 | 9,103 | 9,141 | 9,122 | 9,103 | 9,123 | 9,128 | 9,151 | 9,200 | 9,190 | 9,213 | 9,236 | 9,234 | 9,343 |
| Interest coverage | 16.64 | 15.08 | 14.03 | 13.10 | -16.80 | -84.02 | -90.50 | -94.25 | -65.56 | -1.13 | -3.61 | -2.26 | 0.46 | 5.13 | 9.32 | 7.52 | 8.96 | 8.42 | 8.65 | 13.97 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $178,280K ÷ $10,717K
= 16.64
The interest coverage ratio measures a company's ability to cover its interest obligations with its operating income. A higher ratio indicates a stronger ability to meet interest payments.
Looking at SolarWinds Corp's interest coverage over the past few quarters, we can see some fluctuations. The company had a strong interest coverage ratio in June 2024 at 16.64, indicating that it generated 16.64 times more operating income than required to cover its interest expenses.
However, in previous quarters, the interest coverage ratio was relatively stable but not as robust. The ratios ranged from around 13 to 15, showing that the company was still able to cover its interest expenses comfortably.
It is worth noting that there were significant drops in interest coverage in some quarters, particularly in March 2023 and before, where the company had negative ratios (-16.80 and -84.02). This suggests that SolarWinds Corp faced challenges in covering its interest obligations with its operating income during those periods.
Overall, SolarWinds Corp's interest coverage has shown some variability, with periods of strong coverage and some weaker performance. Monitoring this ratio over time can provide insights into the company's financial health and its ability to meet its debt obligations.
Peer comparison
Jun 30, 2024