ACADIA Pharmaceuticals Inc (ACAD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 84,279 | -73,379 | -223,596 | -170,439 | -286,586 |
| Interest expense | US$ in thousands | — | — | 6,610 | 6,264 | 8,545 |
| Interest coverage | — | — | -33.83 | -27.21 | -33.54 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $84,279K ÷ $—K
= —
From the data provided for ACADIA Pharmaceuticals Inc, the interest coverage ratio has shown a consistent negative trend over the years. This indicates that the company's earnings before interest and taxes (EBIT) are insufficient to cover its interest expenses. In 2020, the interest coverage ratio was -33.54, and it deteriorated further to -27.21 in 2021 and -33.83 in 2022. The negative values suggest a potentially risky financial position, as the company is struggling to meet its interest payment obligations from its operating income. The lack of specific data for 2023 and 2024 makes it challenging to assess whether there will be any improvement in the company's ability to cover its interest expenses in the future. Overall, the consistent negative trend in the interest coverage ratio raises concerns about ACADIA Pharmaceuticals Inc's financial health and its ability to service its debt.
Peer comparison
Dec 31, 2024