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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Solvency Ratios (Summary)
Cadence Design Systems Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
The solvency profile exhibits a period of relative stability followed by a significant increase in leverage starting in mid-2024, accompanied by a sustained decline in the ability to cover interest expenses over the entire period.
- Debt Leverage Ratios
- A synchronized upward shift is observed across debt-to-equity, debt-to-capital, and debt-to-assets ratios. After remaining relatively low through early 2024, these metrics spiked in September 2024, with the debt-to-equity ratio reaching a peak of 0.62 compared to 0.18 in March 2024. Similarly, debt-to-assets peaked at 0.31 in September 2024. Following this peak, a gradual corrective trend is evident, with the debt-to-equity ratio moderating to 0.44 and the debt-to-assets ratio settling at 0.24 by March 2026.
- Financial Leverage
- Financial leverage demonstrates a moderate increase over the analyzed timeframe. The ratio rose from 1.59 in April 2022 to a peak of 2.01 in September 2024, mirroring the spike seen in the debt-specific ratios. In the subsequent quarters, the leverage ratio stabilized, ending the period at 1.84 in March 2026, suggesting a slight reduction in the reliance on debt to finance assets relative to the 2024 peak.
- Interest Coverage Capacity
- A consistent and pronounced downward trend is observed in the interest coverage ratio. Starting from a high of 58.34 in July 2022, the ratio declined steadily, dropping below 30 in June 2024 and continuing to fall to 14.39 by March 2026. While the ratio remains well above the critical threshold of 1.0, the substantial decrease indicates a weakening margin of safety in meeting interest obligations from operating earnings.
In summary, the solvency position transitioned from a very low-debt environment to a more leveraged structure in late 2024. While the company has since reduced its leverage ratios slightly, the capacity to service debt via earnings has deteriorated consistently throughout the observed period.
Debt Ratios
Coverage Ratios
Debt to Equity
Cadence Design Systems Inc., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Revolving credit facility | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a period of strategic debt expansion coupled with consistent growth in shareholders' equity, leading to a higher but managed leverage profile over the observed timeframe.
- Total Debt Volatility
- Total debt exhibited significant fluctuations, characterized by three distinct periods of increase. Initial debt levels remained stable around 348 million USD until October 2022, when they rose to approximately 798 million USD. A more substantial expansion occurred between June 2024 and September 2024, where debt surged from 1.35 billion USD to 2.83 billion USD. Following a period of relative stabilization around 2.48 billion USD throughout 2025, another increase to 2.91 billion USD was recorded by March 2026.
- Stockholders' Equity Growth
- Equity demonstrated a consistent and linear upward trend, increasing from 2.76 billion USD in April 2022 to 6.56 billion USD by March 2026. This steady accumulation of equity has served as a critical buffer, offsetting the impact of increased borrowing on the overall solvency position.
- Debt to Equity Ratio Dynamics
- The debt to equity ratio reflects the interplay between aggressive borrowing and equity growth. The ratio remained relatively low between 0.13 and 0.29 during 2022 and 2023, reaching a low of 0.18 by March 2024. A sharp increase followed, peaking at 0.62 in September 2024, coinciding with the primary debt surge. Subsequent quarters show a gradual decline in the ratio, ending at 0.44 by March 2026, indicating that equity growth began to outpace debt accumulation in the final stages of the period.
Debt to Capital
Cadence Design Systems Inc., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Revolving credit facility | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The solvency profile is characterized by two distinct periods of leverage expansion interspersed with phases of gradual deleveraging and consistent capital growth. Total capital has exhibited a strong upward trajectory, increasing from approximately 3.11 billion US$ in early 2022 to 9.47 billion US$ by March 2026, providing a substantial buffer against the rising debt levels.
- Debt Accumulation Trends
- Total debt experienced two primary spikes. The first occurred in October 2022, where debt rose from 348 million US$ to approximately 798 million US$. Following a period of stability and slight reduction between December 2022 and March 2024, a second and more aggressive increase took place in mid-2024. Debt surged from 649 million US$ in March 2024 to a peak of 2.83 billion US$ by September 2024, before stabilizing and eventually reaching 2.91 billion US$ by March 2026.
- Capital Base Expansion
- A consistent increase in total capital is observed throughout the analyzed period. The capital base grew steadily from 3.11 billion US$ in April 2022 to over 4.22 billion US$ by March 2024. This growth accelerated further in 2024 and 2025, culminating in a total capital figure of 9.47 billion US$ by the end of the period. This expansion suggests a significant increase in equity or other long-term funding sources that offset the impact of increased borrowing.
- Debt to Capital Ratio Dynamics
- The debt to capital ratio reflects the volatility of the borrowing strategy. The ratio initially climbed from 0.11 to 0.23 in late 2022, then trended downward to 0.15 by March 2024. The most significant shift occurred between March 2024 and September 2024, where the ratio more than doubled, peaking at 0.38. In the subsequent quarters, the ratio gradually declined to 0.31 by March 2026, driven primarily by the continued expansion of the total capital base despite the high absolute levels of debt.
Overall, while the absolute level of debt has increased significantly over the four-year period, the concurrent growth in total capital has prevented the solvency ratio from escalating linearly. The organization transitioned from a low-leverage position in 2022 to a more moderately leveraged position by 2026, with the debt to capital ratio stabilizing at approximately 31%.
Debt to Assets
Cadence Design Systems Inc., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Revolving credit facility | |||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The solvency profile exhibits a transition from a low-leverage position to a moderately leveraged state over the analyzed period. While both total debt and total assets increased significantly, the pace of debt accumulation accelerated most sharply between June 2024 and September 2024, fundamentally altering the balance sheet structure.
- Debt to Assets Ratio Trends
- From April 2022 through March 2024, the debt-to-assets ratio remained relatively low, fluctuating between 0.08 and 0.16. A period of stabilization was observed throughout 2023, with the ratio declining to 0.11 by March 2024, indicating a conservative leverage posture during this timeframe.
- Leverage Acceleration
- A significant shift occurred in the second quarter of 2024, as the ratio rose from 0.11 to 0.19, eventually peaking at 0.31 in September 2024. This spike corresponds with a rapid escalation in total debt, which increased from approximately 649 million in March 2024 to over 2.8 billion by September 2024.
- Asset Expansion and Solvency Stabilization
- Parallel to the increase in liabilities, total assets experienced substantial growth, rising from approximately 5.7 billion in March 2024 to over 12 billion by March 2026. This expansion of the asset base served to moderate the debt-to-assets ratio, which trended downward from its 0.31 peak to settle at 0.24 by the end of the period. This suggests that the increased borrowing was closely coupled with significant asset acquisition or growth.
Financial Leverage
Cadence Design Systems Inc., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | 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 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial profile from April 2022 through March 2026 is characterized by substantial expansion in the asset base and a corresponding increase in stockholders' equity, accompanied by periodic fluctuations in financial leverage.
- Asset Expansion and Equity Growth
- Total assets experienced a significant upward trajectory, increasing from approximately 4.4 billion US$ in April 2022 to over 12 billion US$ by March 2026. This growth was particularly pronounced between March 2024 and September 2024, where assets rose from 5.7 billion US$ to 9.2 billion US$. Concurrently, stockholders' equity grew steadily from 2.76 billion US$ to 6.56 billion US$, indicating a consistent strengthening of the company's net worth over the analyzed period.
- Financial Leverage Dynamics
- The financial leverage ratio exhibited volatility in the initial years, rising from 1.59 in April 2022 to a peak of 1.87 in December 2022, before receding to 1.60 by March 2024. A sharp increase occurred in the third quarter of 2024, where the ratio reached its maximum value of 2.01. This peak indicates a temporary increase in the proportion of debt or liabilities used to finance assets relative to equity.
- Capital Structure Stabilization
- Following the peak in September 2024, the financial leverage ratio entered a period of stabilization, remaining within a narrow range between 1.84 and 1.90 from December 2024 through March 2026. This pattern suggests a strategic effort to balance aggressive asset growth with equity accumulation, resulting in a more consistent leverage profile in the final year of the period.
Interest Coverage
Cadence Design Systems Inc., interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The solvency profile exhibits a significant contraction in the interest coverage ratio over the analyzed period, characterized by a divergence between operating profit growth and the escalation of debt servicing costs. Although operating earnings have trended upward, the rapid increase in interest expenses has systematically eroded the margin of safety regarding the company's ability to meet its interest obligations.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating profitability demonstrated overall growth and resilience, starting at 314,029 thousand USD in April 2022 and reaching 459,716 thousand USD by March 2026. While the trajectory included periodic volatility—most notably a dip in late 2022—the trend remained positive, with a significant peak of 522,401 thousand USD observed in September 2025.
- Interest Expense Escalation
- A substantial increase in interest costs is evident, moving from 4,108 thousand USD in April 2022 to 31,613 thousand USD in March 2026. The expense remained relatively stable below 10,000 thousand USD until June 2024, after which a sharp escalation occurred, with costs more than doubling between June 2024 (12,905 thousand USD) and September 2024 (24,495 thousand USD), eventually plateauing around the 30,000 thousand USD mark.
- Interest Coverage Ratio Analysis
- The interest coverage ratio experienced a persistent downward trend, declining from a high of 52.92 in April 2022 to 14.39 by March 2026. The most acute compression occurred between June 2024 and March 2025, where the ratio dropped from 33.48 to 13.50. This decline indicates that while the company maintains a sufficient capacity to cover its interest payments, the relative cushion provided by operating income has diminished considerably due to the increased cost of debt.