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.