Tidewater Inc (TDW)
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 | 302,455 | 301,102 | 278,703 | 239,715 | 187,401 | 135,235 | 96,791 | 44,737 | 14,882 | -39,045 | -76,537 | -82,103 | -108,202 | -98,413 | -100,507 | -177,565 | -166,141 | -182,605 | -181,113 | -88,278 |
| Interest expense (ttm) | US$ in thousands | 72,967 | 76,488 | 78,154 | 63,758 | 48,472 | 32,548 | 17,651 | 17,204 | 17,189 | 16,267 | 15,557 | 15,217 | 15,583 | 18,150 | 20,540 | 22,555 | 24,156 | 24,454 | 25,851 | 27,474 |
| Interest coverage | 4.15 | 3.94 | 3.57 | 3.76 | 3.87 | 4.15 | 5.48 | 2.60 | 0.87 | -2.40 | -4.92 | -5.40 | -6.94 | -5.42 | -4.89 | -7.87 | -6.88 | -7.47 | -7.01 | -3.21 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $302,455K ÷ $72,967K
= 4.15
The Interest Coverage Ratio measures a company's ability to meet its interest obligations on outstanding debt. Tidewater Inc's interest coverage ratios from March 31, 2020, to December 31, 2024, indicate a fluctuating pattern.
From March 2020 to September 2022, the company had negative interest coverage ratios, implying that its operating income was insufficient to cover interest expenses. This could signal financial distress, as Tidewater Inc may have been struggling to meet its interest obligations during this period.
However, the interest coverage ratio shows a positive trend starting from December 2022, indicating an improvement in the company's ability to cover its interest expenses with operating income. The ratios continue to increase through December 2024, which suggests a more stable financial position for Tidewater Inc.
Overall, the upward trend in the interest coverage ratio from negative to positive values is a positive indicator, showcasing the company's progress in managing its debt obligations and generating sufficient operating income to cover interest expenses. This improvement in financial health could enhance Tidewater Inc's creditworthiness and overall stability in the long term.
Peer comparison
Dec 31, 2024