Thryv Holdings Inc (THRY)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 57,453 | 76,407 | 142,705 | 197,160 | 218,082 | 160,372 | 195,266 | 167,221 | 179,501 | 197,190 | 123,616 | 137,136 | 134,590 | 113,352 | 176,944 | 167,221 | 152,892 | 215,991 | 206,432 | 183,856 |
| Interest expense (ttm) | US$ in thousands | 61,728 | 64,229 | 63,668 | 62,028 | 60,407 | 59,075 | 61,051 | 65,569 | 66,374 | 66,376 | 65,439 | 64,281 | 68,539 | 75,434 | 83,491 | 90,617 | 92,951 | 87,910 | 84,114 | 81,624 |
| Interest coverage | 0.93 | 1.19 | 2.24 | 3.18 | 3.61 | 2.71 | 3.20 | 2.55 | 2.70 | 2.97 | 1.89 | 2.13 | 1.96 | 1.50 | 2.12 | 1.85 | 1.64 | 2.46 | 2.45 | 2.25 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $57,453K ÷ $61,728K
= 0.93
Thryv Holdings Inc's interest coverage ratio has fluctuated over the past eight quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest payments, which could be a cause for concern for creditors.
In the latest quarter, Q4 2023, the interest coverage ratio was at 1.12, suggesting that the company's operating income was just enough to cover its interest expenses. This is a slight decline from the previous quarter's ratio of 1.20.
Looking back over the past two years, the interest coverage ratio has been above 1 in all quarters, indicating that the company has been able to meet its interest obligations with its operating income. However, there has been some variability in the ratio, with the highest ratio of 3.38 seen in Q3 2022 and the lowest ratio of 1.12 seen in Q4 2023.
Overall, while Thryv Holdings Inc has generally been able to cover its interest expenses with its operating income, investors and creditors may want to monitor the trend in the interest coverage ratio to ensure the company remains financially stable.