Tidewater Inc (TDW)
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 | 293,066 | 278,794 | 239,614 | 182,215 | 132,238 | 95,624 | 58,517 | 26,708 | -13,402 | -54,026 | -76,025 | -95,016 | -93,372 | -96,984 | -194,570 | -186,802 | -211,493 | -208,868 | -95,517 | -86,604 |
| Interest expense (ttm) | US$ in thousands | 50,957 | 51,223 | 49,866 | 48,472 | 18,676 | 17,266 | 17,234 | 17,189 | 14,078 | 14,362 | 14,850 | 15,583 | 24,400 | 24,785 | 24,589 | 24,156 | 33,048 | 31,444 | 30,248 | 29,068 |
| Interest coverage | 5.75 | 5.44 | 4.81 | 3.76 | 7.08 | 5.54 | 3.40 | 1.55 | -0.95 | -3.76 | -5.12 | -6.10 | -3.83 | -3.91 | -7.91 | -7.73 | -6.40 | -6.64 | -3.16 | -2.98 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $293,066K ÷ $50,957K
= 5.75
Based on the data provided, the interest coverage ratio of Tidewater Inc has fluctuated over the periods mentioned. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Looking at the trend in Tidewater Inc's interest coverage, we see that the ratio improved from -7.91 in March 2021 to 5.75 in September 2024. This improvement suggests that the company's operating income is more than sufficient to cover its interest expenses.
However, it is important to note that there were periods, such as in late 2021 and early 2022, where the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during those times. This could be a concern for creditors and investors as it indicates financial distress.
Overall, the recent improvement in Tidewater Inc's interest coverage ratio is a positive sign, but the company should continue to monitor and manage its debt levels and operational efficiency to ensure sustainable coverage of its interest obligations in the future.
Peer comparison
Sep 30, 2024