Tidewater Inc (TDW)
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 | 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 | -106,642 |
| Interest expense (ttm) | US$ in thousands | 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 | 6,667 |
| Interest coverage | 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 | -16.00 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $278,794K ÷ $51,223K
= 5.44
The interest coverage ratio for Tidewater Inc has shown fluctuations over the past few quarters. It measures the company's ability to meet its interest expenses from its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
From December 2020 to June 2021, the interest coverage ratio was negative, suggesting that Tidewater Inc did not have sufficient operating income to cover its interest payments during this period. This raised concerns about the company's financial health and ability to meet its debt obligations.
However, from September 2021 onwards, there has been a significant improvement in the interest coverage ratio. The ratio has turned positive and has been increasing steadily, indicating that the company's operating income is now sufficient to cover its interest expenses. The ratio peaked at 7.08 in September 2023, demonstrating a strong ability to meet its interest obligations.
Overall, the recent trend in the interest coverage ratio shows a positive financial performance for Tidewater Inc, as it has managed to strengthen its ability to cover interest expenses from its operating income. Continued monitoring of this ratio will be essential to ensure the company's financial stability in the future.
Peer comparison
Jun 30, 2024