TechTarget, Inc. Common Stock (TTGT)
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 | -9,091 | -10,383 | -10,482 | -2,269 | 14,385 | 32,296 | 50,761 | 61,128 | 60,244 | 48,996 | 41,815 | 34,354 | 28,176 | 27,516 | 22,457 | 22,820 | 22,297 | 22,736 | 21,949 | 22,740 |
| Interest expense (ttm) | US$ in thousands | 12,279 | 15,070 | 11,783 | 8,466 | 8,466 | 5,675 | 3,744 | 1,547 | 23,438 | 23,637 | 23,139 | 23,275 | 2,177 | 2,069 | 1,593 | 1,366 | 678 | 996 | 1,239 | 907 |
| Interest coverage | -0.74 | -0.69 | -0.89 | -0.27 | 1.70 | 5.69 | 13.56 | 39.51 | 2.57 | 2.07 | 1.81 | 1.48 | 12.94 | 13.30 | 14.10 | 16.71 | 32.89 | 22.83 | 17.72 | 25.07 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-9,091K ÷ $12,279K
= -0.74
TechTarget, Inc. Common Stock interest coverage ratio has exhibited significant fluctuations over the periods analyzed. The interest coverage ratio, which indicates the company's ability to meet interest obligations from its operating income, stood at a healthy 25.07 as of December 31, 2019, showing a strong ability to cover interest expenses.
However, the ratio saw a downward trend during the following quarters, dropping to 12.94 as of September 30, 2021. This decline suggests a potential strain on the company's ability to consistently cover its interest payments with its operating income.
The interest coverage ratio experienced a sharp decline to 1.48 by the end of December 31, 2021, significantly below the industry benchmarks. This low ratio may signal potential financial distress or liquidity issues, as the company's operating income may not be sufficient to service its interest obligations.
Although there was a substantial improvement in the interest coverage ratio to 39.51 by December 31, 2022, indicating a strong ability to cover interest expenses, the ratio dropped back to negative figures in subsequent periods, indicating a concerning situation where operating income is insufficient to cover interest costs.
Overall, the fluctuating trend in TechTarget, Inc. Common Stock interest coverage ratio highlights the company's varying ability to meet its interest obligations using its operating income, showcasing periods of strength as well as potential financial challenges.
Peer comparison
Sep 30, 2024