Thryv Holdings Inc (THRY)
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 | 3,854 | 58,566 | 63,067 | 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 |
| Interest expense (ttm) | US$ in thousands | 50,865 | 54,482 | 58,599 | 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 |
| Interest coverage | 0.08 | 1.07 | 1.08 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,854K ÷ $50,865K
= 0.08
Thryv Holdings Inc's interest coverage ratio fluctuated over the past 20 quarters, ranging from a low of 0.08 to a high of 3.61. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. Generally, a higher interest coverage ratio is preferred as it suggests the company is more capable of servicing its debt.
From the data provided, it is evident that there have been periods where the company's interest coverage was relatively low, such as in Sep 2024 and Dec 2023, with ratios of 0.08 and 0.93, respectively. These low ratios may raise concerns about the company's ability to cover its interest expenses with its operating profits during those periods.
On the other hand, there were quarters, like Dec 2022 and Mar 2023, where Thryv Holdings Inc showed stronger interest coverage with ratios above 3.00. This indicates a healthier financial position and suggests the company had more than sufficient operating income to cover its interest payments during those periods.
Overall, the analysis of Thryv Holdings Inc's interest coverage ratios reveals variability in its ability to service its debt obligations over the past few years, highlighting the importance of monitoring this metric for assessing the company's financial health and risk management.