Ziff Davis Inc (ZD)
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 | 113,648 | 115,846 | 131,831 | 142,157 | 132,611 | 145,349 | 187,702 | 194,694 | 198,941 | 190,877 | 206,853 | 171,021 | 167,340 | 14,561 | 46,989 | 109,974 | 138,340 | 127,113 | 109,034 | 92,608 |
| Interest expense (ttm) | US$ in thousands | 13,988 | 9,848 | 8,641 | 17,320 | 20,031 | 23,203 | 28,946 | 25,419 | 32,449 | 43,836 | 55,138 | 69,585 | 79,779 | 129,065 | 131,915 | 132,708 | 131,975 | 84,800 | 79,359 | 74,498 |
| Interest coverage | 8.12 | 11.76 | 15.26 | 8.21 | 6.62 | 6.26 | 6.48 | 7.66 | 6.13 | 4.35 | 3.75 | 2.46 | 2.10 | 0.11 | 0.36 | 0.83 | 1.05 | 1.50 | 1.37 | 1.24 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $113,648K ÷ $13,988K
= 8.12
The interest coverage ratio of Ziff Davis Inc has shown significant fluctuations over the analyzed period. From March 31, 2020, where the ratio was 1.24, it increased gradually to reach a peak of 15.26 on June 30, 2024. This implies that the company's operating income was able to cover its interest expenses more than 15 times at this point.
Despite this remarkable improvement, there were periods of concern, such as the decline in interest coverage to 0.11 on September 30, 2021, suggesting financial strain as the company struggled to meet its interest obligations. However, Ziff Davis Inc demonstrated resilience and managed to substantially strengthen its financial position thereafter.
Overall, the trend indicates an improving ability of Ziff Davis Inc to meet its interest payments and suggests a more stable financial position as the interest coverage ratio consistently increased from 2021 onwards, reaching a healthy level of 8.12 on December 31, 2024. This positive trend is a promising sign of the company's financial health and ability to manage its debt obligations effectively.