ViaSat Inc (VSAT)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -807,990 | -893,810 | -899,759 | -92,557 | -109,463 | -85,411 | -82,831 | -140,293 | -85,497 | -111,939 | -61,448 | -24,347 | -45,953 | 43,221 | 35,430 | 41,172 | 38,421 | 33,752 | 25,790 | -14,206 |
| Interest expense (ttm) | US$ in thousands | 400,398 | 283,184 | 158,394 | 76,875 | 26,809 | 30,853 | 27,517 | 28,972 | 29,391 | 23,289 | 25,758 | 29,455 | 32,687 | 35,845 | 37,241 | 36,991 | 38,641 | 39,706 | 45,326 | 49,860 |
| Interest coverage | -2.02 | -3.16 | -5.68 | -1.20 | -4.08 | -2.77 | -3.01 | -4.84 | -2.91 | -4.81 | -2.39 | -0.83 | -1.41 | 1.21 | 0.95 | 1.11 | 0.99 | 0.85 | 0.57 | -0.28 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-807,990K ÷ $400,398K
= -2.02
The interest coverage ratio of ViaSat Inc, which measures the company's ability to meet its interest obligations from its operating income, has shown significant fluctuations over the past few quarters.
From December 2019 to September 2020, the company had a negative interest coverage ratio, indicating that its operating income was insufficient to cover its interest expenses during these periods. This could be a cause for concern as it may indicate financial distress or an unsustainable level of debt.
However, from December 2020 to March 2022, the interest coverage ratio improved and fluctuated between -0.83 and -2.91. Although still negative, this suggests that the company's operating income was approaching a level where it could potentially cover its interest expenses.
In the most recent quarters from March 2022 to March 2024, the interest coverage ratio deteriorated again, with values ranging from -1.20 to -5.68. This downward trend may raise questions about the company's ability to service its debt obligations with its current level of operating income.
Overall, the negative values of the interest coverage ratio for ViaSat Inc indicate a risk regarding its ability to cover interest expenses with operating income. It is essential for the company to monitor and address this trend to ensure long-term financial stability and avoid potential liquidity issues.
Peer comparison
Mar 31, 2024