Twilio Inc (TWLO)
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 | -88,613 | -996,729 | -1,243,630 | -960,929 | -479,446 |
| Interest expense | US$ in thousands | — | — | 387,040 | 45,345 | 24,980 |
| Interest coverage | — | — | -3.21 | -21.19 | -19.19 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-88,613K ÷ $—K
= —
The interest coverage ratio for Twilio Inc., based on the provided data, exhibits a consistently negative trend from December 31, 2020, through December 31, 2023. Specifically, the ratios are as follows:
- December 31, 2020: -19.19
- December 31, 2021: -21.19
- December 31, 2022: -3.21
- December 31, 2023: Data not available
- December 31, 2024: Data not available
A negative interest coverage ratio indicates that Twilio’s earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses in all publicly available years. The ratios show a significant deterioration from 2020 to 2021, with a further slight improvement in 2022, although it remained negative. The sharp negative figures suggest that the company's operating earnings were considerably less than its interest obligations, highlighting potential challenges in generating adequate operating income to service debt.
The absence of data for 2023 and 2024 implies that the company may have either experienced a substantial reduction in interest expenses or a lack of reported operating earnings, or possibly that interest coverage calculations are not feasible due to this missing information. Overall, the persistently negative and large magnitude of these ratios reflects substantial financial stress related to interest obligations during the period under review.
Peer comparison
Dec 31, 2024