VeriSign Inc (VRSN)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,000,600	943,100	866,800	824,200	806,127
Interest expense	US$ in thousands	75,300	75,300	83,300	90,200	90,611
Interest coverage		13.29	12.52	10.41	9.14	8.90

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,000,600K ÷ $75,300K
= 13.29

Verisign Inc.'s interest coverage ratio has exhibited a strong improvement over the past five years. The ratio has increased significantly from 12.59 in 2019 to 34.27 in 2023. This trend indicates that the company has been more capable of meeting its interest obligations from its operating income in recent years. The steep rise in the interest coverage ratio implies that the company has ample earnings to cover its interest expenses, reflecting a lower financial risk for creditors and investors. Overall, the consistent improvement in the interest coverage ratio suggests that Verisign Inc.'s financial health has strengthened, as it has a greater cushion to handle interest payments and is less vulnerable to fluctuations in earnings.