Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Enphase Energy Inc., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity
- The Debt to Equity ratio shows a significant decline from 4.84 in Q1 2019 to a low of 0.39 in Q4 2019, indicating a reduction in leverage relative to equity. However, from 2020 onwards, the ratio increases again, peaking at 3.88 in Q1 2022 before gradually decreasing to around 1.3 by the end of 2023. This pattern suggests periods of increased borrowing followed by deleveraging phases, with a general trend toward moderate leverage in the most recent quarters.
- Debt to Capital
- This ratio follows a similar trend to Debt to Equity, dropping from 0.83 in Q1 2019 to 0.28 in Q4 2019, then rising to a peak of 0.80 in Q1 2022. Subsequently, there is a steady decline, settling near 0.57 at the end of 2023. These fluctuations correspond to changes in the company's capital structure, reflecting varying reliance on debt financing.
- Debt to Assets
- The Debt to Assets ratio remains relatively stable in the first year, fluctuating between 0.15 and 0.21. Starting in 2020, the ratio increases, reaching a maximum of 0.57 in Q1 2022. Afterward, it decreases steadily to approximately 0.38 by Q4 2023. This indicates an initial increase in the proportion of assets financed by debt, followed by efforts to reduce debt relative to total assets.
- Financial Leverage
- Financial leverage decreases sharply from 22.6 in Q1 2019 to about 2.48 at the end of 2020, indicating a major reduction in the use of debt versus equity. Thereafter, it rises again to 6.84 in Q1 2022 before gradually declining to about 3.44 by Q4 2023. The trend suggests volatility in leverage, with a recent movement toward more conservative leverage levels compared to earlier periods.
- Interest Coverage
- Interest coverage data is not available until Q4 2019, where the ratio starts at 10.3 and then increases to 16.84 in Q1 2020. It declines somewhat in 2020, fluctuating between 3.41 and 6.77 during the middle quarters. From 2021 onward, a strong upward trend is evident, reaching very high levels above 75 in late 2023. This indicates a marked improvement in the company’s ability to meet interest obligations, reflecting stronger earnings or reduced interest expense.
Debt Ratios
Coverage Ratios
Debt to Equity
Enphase Energy Inc., debt to equity calculation (quarterly data)
| 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 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Debt, current | ||||||||||||||||||||||||||
| Debt, non-current | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in total debt, stockholders’ equity, and the debt to equity ratio over the observed periods.
- Total Debt
- Total debt displayed a significant increase from the first quarter of 2019 through the first quarter of 2021, escalating from approximately US$68 million to over US$1 billion. This sharp rise was followed by a relatively stable range around US$1.2 billion starting from the first quarter of 2022 and continuing through the last observed period in 2023, indicating stabilization in the company's borrowing levels after a period of substantial increase.
- Stockholders’ Equity
- Stockholders’ equity showed strong growth overall from early 2019 to late 2020, increasing from approximately US$14 million to nearly US$484 million. A sharp jump was observed in the first quarter of 2021, where equity surged to approximately US$733 million. However, the subsequent quarters witnessed a decline and volatile fluctuations, reaching a lower point in the last quarter of 2021. From early 2022 onwards, equity experienced a recovery trajectory, marked by considerable gains, peaking around US$1 billion in mid-2023 before a slight decrease at the end of 2023.
- Debt to Equity Ratio
- The debt to equity ratio started high at 4.84 in the first quarter of 2019, reflecting very high leverage relative to equity at that time. It then declined sharply to below 1 by the end of 2019, suggesting an improvement in the company’s capital structure with equity growing faster than debt. The ratio rose again from 2020 into 2021, peaking at 2.41 in the fourth quarter of 2021, signifying increased leverage. After this peak, the ratio declined steadily through 2022 and stabilized between approximately 1.27 and 1.33 during 2023, indicating a moderate and controlled level of leverage compared to stockholders’ equity.
Overall, the company experienced a phase of rapid expansion in debt and equity from 2019 until early 2021, followed by fluctuations and eventual stabilization in both capital components. The leverage, as measured by the debt to equity ratio, reflected periods of both high and moderate capitalization risk, with a more balanced financial position apparent in the most recent quarters.
Debt to Capital
Enphase Energy Inc., debt to capital calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Debt, current | ||||||||||||||||||||||||||
| Debt, non-current | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial ratios over the reported periods reveals significant changes in the company's capital structure and leverage.
- Total Debt
- Total debt exhibited a rising trend from the first quarter of 2019 through 2023, beginning at approximately $68 million and increasing substantially to around $1.29 billion by year-end 2023. Notably, the period from early 2019 to the end of 2020 shows a steep increase, followed by relatively stable but high debt levels through 2023.
- Total Capital
- Total capital also increased markedly during the same period, starting at about $82.5 million in early 2019 and peaking at over $2.26 billion in the middle of 2023 before a slight decline near the end of the year. The growth in total capital appears to be less volatile and more gradual compared to the jump seen in total debt.
- Debt to Capital Ratio
- The debt to capital ratio demonstrates considerable fluctuation over the quarters. Initially, the ratio was very high (0.83 in Q1 2019), then it dropped significantly throughout 2019 and into 2020, reaching lows around 0.28 to 0.41. However, starting in early 2021, the ratio increased markedly, peaking at 0.8 in Q1 2022. After this peak, the ratio shows a declining trend but remains elevated, stabilizing around 0.56 to 0.57 in 2023. This indicates a growing reliance on debt financing as a component of the capital structure compared to earlier periods.
In summary, the company has significantly increased its total debt over the analyzed timeframe, which has contributed to a higher debt to capital ratio after a period of reduction. The increase in total capital has offset some of the debt growth, but leverage remains elevated relative to the early periods. These trends suggest an increased financial risk profile that may impact future financing and operational decisions.
Debt to Assets
Enphase Energy Inc., debt to assets calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Debt, current | ||||||||||||||||||||||||||
| Debt, non-current | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals distinct trends in the company's capital structure and asset base over the observed periods.
- Total Debt
-
Total debt showed an initial moderate increase from approximately $68.4 million to $105.5 million between March 2019 and December 2019. A significant surge occurred in the first quarter of 2020, with debt rising sharply to nearly $396 million. Subsequently, total debt remained elevated but relatively stable around $330 million to $360 million through the end of 2020.
In 2021, total debt more than tripled, reaching over $1 billion by the first quarter and maintaining this elevated level through the end of the year. The upward trend continued into 2022 and early 2023, with debt hovering near $1.29 billion. The data shows minor fluctuations but consistent high leverage in this period.
- Total Assets
-
Total assets demonstrated strong growth over the entire period. Starting at approximately $319 million in the first quarter of 2019, assets nearly doubled by the end of 2019 to about $713 million. The growth accelerated further in 2020, with assets exceeding $1 billion and then more than doubling to over $2.1 billion by early 2021.
Asset levels fluctuated somewhat in 2021 but maintained a general upward trajectory, reaching approximately $2.7 billion by the end of 2022. A peak was observed in the third quarter of 2023 at about $3.55 billion, followed by a slight decline to roughly $3.38 billion in the last quarter of 2023.
- Debt to Assets Ratio
-
The debt to assets ratio followed a volatile but insightful path. Initially stable around 0.20 to 0.21 during 2019, the ratio escalated sharply to a peak of 0.38 in the first quarter of 2020, coinciding with the sharp rise in debt.
The ratio increased further in 2021, reaching a high of 0.50 by the fourth quarter, reflecting accelerated debt accumulation relative to assets. However, starting from 2022, the ratio exhibited a declining trend, dropping from as high as 0.57 in the first quarter of 2022 to about 0.36 by the third quarter of 2023.
This decline suggests that asset growth outpaced debt increases during this later period, improving the leverage position despite high absolute levels of debt.
In summary, the company experienced significant debt buildup beginning in early 2020, peaking in 2022, accompanied by substantial asset growth. The decrease in the debt to assets ratio in the most recent periods indicates a gradual improvement in financial leverage, reflecting stronger asset expansion compared to debt increases. Nevertheless, the company remains with a relatively high debt burden in absolute terms throughout the latter periods.
Financial Leverage
Enphase Energy Inc., financial leverage calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Stockholders’ equity (deficit) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the observed periods.
- Total assets
- Total assets show a consistent upward trend from March 31, 2019 to December 31, 2023. Starting at approximately $319 million, assets increased substantially to over $3.3 billion by the end of 2023. This growth reflects a significant expansion in the company's asset base, with some fluctuations evident during 2020 and 2021 but no major declines overall.
- Stockholders’ equity (deficit)
- Stockholders' equity experienced substantial growth from $14 million in March 2019 to over $1 billion by March 2023, indicating increasing net worth and financial strength. However, there was notable volatility, including a decline in equity from December 2021 to March 2022 and again from March 2023 to December 2023, though the levels remained substantially higher compared to the beginning of the period. These fluctuations could reflect changes in retained earnings, issuance or repurchase of stock, or other equity-related transactions.
- Financial leverage
- The financial leverage ratio demonstrates variability throughout the period, beginning at a very high level of 22.6 in March 2019, which sharply declined to lower single-digit levels by the end of 2019. From 2020 onwards, the ratio fluctuated mostly between 2.5 and 4.8, with occasional peaks such as in December 2021 at 4.83 and a higher ratio in mid-2022 at 6.84. More recent quarters show a downward trend in financial leverage, ending at approximately 3.44 in December 2023. This suggests the company has been gradually reducing reliance on debt financing relative to equity, although maintaining a moderate leverage level.
Overall, the company's asset base and equity have grown substantially, indicating expansion and improved capitalization. The financial leverage trend suggests a move toward a more balanced capitalization structure after an initial period of high leverage. The fluctuations in equity and leverage ratios point to active financial management responding to operational needs and market conditions.
Interest Coverage
Enphase Energy Inc., interest coverage calculation (quarterly data)
| 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 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Interest coverage
= (EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023)
÷ (Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the operational performance and interest coverage over the observed periods.
- Earnings Before Interest and Tax (EBIT)
- EBIT exhibited significant volatility throughout the timeline. Initially, there was a clear upward trend from March 2019 (US$6,864 thousand) through December 2019 (US$46,724 thousand). This was followed by a sharp decline in June 2020, where EBIT turned negative (approximately -US$47,903 thousand), indicating a substantial operational loss during that quarter. Subsequent quarters showed a recovery and strong growth momentum, with EBIT rising steadily and reaching an all-time high of approximately US$186,813 thousand by December 2023. Despite slight fluctuations, the general trajectory from mid-2020 onwards was robust, suggesting improved operational efficiency or increased revenues.
- Interest Expense
- Interest expense displayed moderate variability but remained relatively stable in the later periods. In the first quarters of the analysis, interest expense was lower but increased markedly from June 2021 to December 2021, peaking around US$12,689 thousand. From early 2022 onwards, interest costs reduced noticeably and stabilized around values between US$2,100 thousand and US$2,300 thousand. This reduction could indicate refinancing, debt repayment, or changes in borrowing conditions.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, showed important fluctuations. Data from 2019 is limited but starting March 2020, ratios ranged from 10.3 to 16.84, indicating relatively comfortable coverage. However, the negative EBIT figure in June 2020 caused this ratio to decrease significantly. Following recovery, interest coverage improved progressively, reaching very high levels in late 2022 and 2023, peaking at 76.6 in December 2023. Such figures reflect a strong capacity to cover interest expenses and suggest improved profitability or lower interest costs relative to earnings in recent years.
Overall, the data portrays a financial landscape characterized by initial growth, a severe operational setback in mid-2020, and a subsequent rebound to historically strong financial performance. The interest expense trends and coverage ratios further support the interpretation of improved financial health and reduced risk related to interest payments towards the end of the observed period.