VeriSign Inc (VRSN)
Interest coverage
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,094,100 | 1,086,600 | 1,074,200 | 1,057,900 | 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 |
| Interest expense (ttm) | US$ in thousands | 75,300 | 75,300 | 75,200 | 75,300 | 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 |
| Interest coverage | 14.53 | 14.43 | 14.28 | 14.05 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,094,100K ÷ $75,300K
= 14.53
VeriSign Inc has exhibited a consistently strong interest coverage ratio over the past few years, indicating the company's ability to comfortably meet its interest payment obligations. The interest coverage ratio has been increasing steadily from 9.29 in March 2020 to 14.53 in December 2024. This signifies that the company's operating income is more than sufficient to cover its interest expenses, providing a buffer for unexpected changes in revenue or costs.
The upward trend in the interest coverage ratio suggests improving financial stability and a reduced risk of financial distress due to the company's ability to generate enough operating income to service its debt. A higher interest coverage ratio is generally viewed positively by investors and creditors as it indicates a lower risk of default on debt payments.
Overall, the consistent increase in VeriSign Inc's interest coverage ratio reflects the company's sound financial management and strong operational performance, positioning it well to meet its debt obligations and navigate potential challenges in the future.
Peer comparison
Dec 31, 2024