Twilio Inc (TWLO)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 42,967 | -16,868 | -88,613 | -434,709 | -571,018 | -710,218 | -996,729 | -857,300 | -1,196,087 | -1,350,819 | -1,243,632 | -1,313,159 | -1,053,752 | -949,012 | -924,319 | -823,736 | -714,274 | -591,946 | -479,446 | -373,018 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 0 | 88,522 | 88,522 | 88,522 | 177,044 | 98,550 | 460,646 | 468,885 | 387,040 | 377,012 | 34,534 | 37,427 | 36,610 | 42,158 | 28,928 | 24,318 | 24,980 | 25,782 |
| Interest coverage | — | — | — | -4.91 | -6.45 | -8.02 | -5.63 | -8.70 | -2.60 | -2.88 | -3.21 | -3.48 | -30.51 | -25.36 | -25.25 | -19.54 | -24.69 | -24.34 | -19.19 | -14.47 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $42,967K ÷ $0K
= —
The interest coverage ratio for Twilio Inc., as of September 30, 2020, through June 30, 2024, consistently reported negative values, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses during these periods. The ratios ranged from a low of approximately -30.51 in June 2022 to around -2.60 in June 2023, suggesting ongoing financial strain and an inability to generate adequate operating income to service interest obligations. Notably, there was a significant improvement observed from June 2022 onwards, where the ratio rose from approximately -30.51 to about -2.60 by June 2023, indicating a reduction in interest coverage deficit.
However, despite this improvement, the ratios remained negative through September 2023, with values fluctuating between approximately -8.70 and -4.91, underscoring continued challenges in covering interest expenses from operating earnings. As of the latest available data in September 2023, the ratio still signals that Twilio's earnings fall short of meeting interest commitments, which poses risks related to debt servicing.
Data for December 2024 and subsequent periods are unavailable or not reported, leaving the company's current interest coverage status incomplete beyond September 2023. Overall, the trend suggests a persistent difficulty in generating sufficient earnings to cover interest expenses, although signs of gradual improvement are observed in recent periods.
Peer comparison
Jun 30, 2025