VeriSign Inc (VRSN)

Interest coverage

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,037,700	1,026,900	1,001,200	977,400	949,900	926,500	906,200	879,600	865,300	847,707	833,731	836,914	839,462	833,521	842,211	841,157	840,264	835,664	820,482	801,023
Interest expense (ttm)	US$ in thousands	75,300	75,300	75,300	75,300	75,300	75,400	75,400	79,600	83,300	86,993	90,730	90,165	90,200	90,319	90,415	90,515	90,611	90,533	90,531	96,688
Interest coverage		13.78	13.64	13.30	12.98	12.61	12.29	12.02	11.05	10.39	9.74	9.19	9.28	9.31	9.23	9.31	9.29	9.27	9.23	9.06	8.28

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,037,700K ÷ $75,300K
= 13.78

Verisign Inc.'s interest coverage ratio has shown a positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently been above 10 in all quarters, with Q4 2023 showing the highest coverage at 34.27. This indicates that the company's operating income is more than sufficient to cover its interest expenses, providing a strong buffer against potential financial difficulties. The steady increase in the interest coverage ratio over time reflects a stable and financially healthy position for Verisign Inc. It suggests that the company has good profitability and cash flow generation to support its debt servicing requirements. Overall, Verisign Inc.'s interest coverage ratio demonstrates a robust financial position and ability to manage debt obligations effectively.