VeriSign Inc (VRSN)
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 | 1,058,200 | 1,000,600 | 943,100 | 866,800 | 824,200 |
| Interest expense | US$ in thousands | 75,300 | 75,300 | 75,300 | 83,300 | 90,200 |
| Interest coverage | 14.05 | 13.29 | 12.52 | 10.41 | 9.14 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,058,200K ÷ $75,300K
= 14.05
VeriSign Inc's interest coverage ratio has exhibited a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations. The ratio has increased steadily from 9.14 in December 2020 to 14.05 in December 2024. This signifies that the company's operating profits are more than sufficient to cover its interest expenses, providing a favorable indication of VeriSign's financial health and ability to service its debt obligations. The consistent improvement in the interest coverage ratio suggests that VeriSign has effectively managed its financial leverage and is in a strong position to meet its debt obligations in the foreseeable future.
Peer comparison
Dec 31, 2024