NCR Voyix Corporation (VYX)
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 | 75,000 | 493,000 | 521,000 | 86,000 | 488,000 |
| Interest expense | US$ in thousands | 294,000 | 285,000 | 238,000 | 218,000 | 197,000 |
| Interest coverage | 0.26 | 1.73 | 2.19 | 0.39 | 2.48 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $75,000K ÷ $294,000K
= 0.26
The interest coverage ratio for NCR Voyix Corporation has shown significant fluctuations over the past five years. In 2023, the company's interest coverage ratio decreased sharply to 0.26, indicating a potentially risky financial position with insufficient operating income to cover its interest expenses. This significant decline from the previous year's ratio of 1.73 suggests a deteriorating ability to meet interest obligations.
In contrast, in 2021 and 2019, the interest coverage ratios were notably higher at 2.19 and 2.48, respectively, reflecting healthier financial conditions where the company's earnings were more than sufficient to cover interest expenses. However, in 2020, there was a significant drop in the interest coverage ratio to 0.39, indicating a temporary vulnerability in meeting interest payments.
Overall, the fluctuating trend in NCR Voyix Corporation's interest coverage ratio suggests varying levels of financial risk and vulnerability to changes in operating performance. It is crucial for the company to closely monitor its financial health and take appropriate actions to ensure adequate coverage of interest expenses in the future.