ACADIA Pharmaceuticals Inc (ACAD)
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 | 52,635 | 80,591 | 22,779 | -4,621 | -73,415 | -154,422 | -127,476 | -164,164 | -223,596 | -222,190 | -206,625 | -216,683 | -170,439 | -192,125 | -262,723 | -263,024 | -285,767 | -275,823 | -235,345 | -248,426 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 0 | 0 | 9,071 | 12,701 | 14,996 | 15,576 | 6,610 | 3,109 | 943 | 496 | 591 | 1,016 | 2,129 | 3,821 | 6,610 | 9,328 | 10,518 | 11,220 |
| Interest coverage | — | — | — | — | -8.09 | -12.16 | -8.50 | -10.54 | -33.83 | -71.47 | -219.11 | -436.86 | -288.39 | -189.10 | -123.40 | -68.84 | -43.23 | -29.57 | -22.38 | -22.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $52,635K ÷ $0K
= —
ACADIA Pharmaceuticals Inc's interest coverage ratio demonstrates the company's ability to meet its interest obligations on outstanding debt. The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the company's interest expense.
Based on the data provided, ACADIA Pharmaceuticals Inc's interest coverage ratios have been consistently negative from March 31, 2020, to December 31, 2023. This indicates that the company's EBIT has not been sufficient to cover its interest expenses during this period. The declining trend in the interest coverage ratio suggests a worsening financial position in terms of debt servicing ability.
However, the interest coverage ratio improves towards the end of the period, with the ratio turning positive from March 31, 2024, onwards. This could indicate an improvement in the company's financial performance and its ability to cover interest expenses with its operating income.
Overall, a negative interest coverage ratio for an extended period can signal financial distress and may raise concerns about the company's ability to meet its debt obligations. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and debt management strategies.
Peer comparison
Dec 31, 2024