Thryv Holdings Inc (THRY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -198,816 | 70,030 | 159,382 | 200,688 | 109,777 |
| Interest expense | US$ in thousands | 61,728 | 61,728 | 60,407 | 66,374 | 68,539 |
| Interest coverage | -3.22 | 1.13 | 2.64 | 3.02 | 1.60 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-198,816K ÷ $61,728K
= -3.22
Thryv Holdings Inc's interest coverage ratio has fluctuated significantly over the past five years. In 2024, the interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses. This is a concerning trend as it signifies financial distress and an inability to meet debt obligations using current operating income.
In 2023, the interest coverage improved to 1.13, still relatively low but indicating that the company was able to cover its interest payments with operating income. The following year, in 2022, the interest coverage ratio increased further to 2.64, showing a better ability to meet interest obligations comfortably.
The highest interest coverage ratio was observed in 2021 at 3.02, suggesting a strong ability to cover interest expenses with operating income. However, the ratio dipped in 2020 to 1.60, indicating a slight decrease in the company's ability to cover interest payments.
Overall, the inconsistent trend in Thryv Holdings Inc's interest coverage ratio raises concerns about the company's financial stability and ability to service its debt obligations. Further analysis of the company's financial performance and debt structure is recommended to understand the underlying reasons for these fluctuations and to assess the company's financial health more accurately.