ViaSat Inc (VSAT)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -807,980 | 1,161,030 | -22,660 | 25,184 | 38,421 |
| Interest expense | US$ in thousands | 400,398 | 26,809 | 29,391 | 32,687 | 38,641 |
| Interest coverage | -2.02 | 43.31 | -0.77 | 0.77 | 0.99 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-807,980K ÷ $400,398K
= -2.02
ViaSat Inc's interest coverage ratio has been fluctuating significantly over the past five years. In March 2023, the interest coverage ratio was notably high at 43.31, indicating a strong ability to cover interest payments with operating profits. However, this ratio dropped substantially in the following years, reaching a negative value in March 2024, signifying that the company's operating profits were insufficient to cover its interest expenses during that period. The negative interest coverage ratio in 2024 raises concerns about ViaSat Inc's financial health and ability to meet its debt obligations. It would be crucial for the company to improve its profitability and cash flow management to ensure better coverage of interest payments in the future.
Peer comparison
Mar 31, 2024