Axcelis Technologies Inc (ACLS)
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 | 212,446 | 241,082 | 269,755 | 280,653 | 275,471 | 254,016 | 235,538 | 225,975 | 223,541 | 202,799 | 185,991 | 155,843 | 127,270 | 96,513 | 74,001 | 66,385 | 59,600 | 57,791 | 45,796 | 32,081 |
| Interest expense (ttm) | US$ in thousands | 5,463 | 5,338 | 5,330 | 5,340 | 5,347 | 5,502 | 5,510 | 5,411 | 5,576 | 5,364 | 5,300 | 5,324 | 4,835 | 4,885 | 4,912 | 4,937 | 5,211 | 5,204 | 5,216 | 5,228 |
| Interest coverage | 38.89 | 45.16 | 50.61 | 52.56 | 51.52 | 46.17 | 42.75 | 41.76 | 40.09 | 37.81 | 35.09 | 29.27 | 26.32 | 19.76 | 15.07 | 13.45 | 11.44 | 11.11 | 8.78 | 6.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $212,446K ÷ $5,463K
= 38.89
Interest coverage ratio is an important financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio signifies that a company is more capable of servicing its debt with its earnings.
Analyzing the data provided for Axcelis Technologies Inc over the period from March 31, 2020, to December 31, 2024, we observe a favorable trend in the interest coverage ratio. The interest coverage ratio has consistently increased from 6.14 on March 31, 2020, to 38.89 on December 31, 2024. This indicates a significant improvement in the company's ability to cover its interest expenses with operating income.
The steady increase in the interest coverage ratio reflects positively on Axcelis Technologies Inc's financial health and stability. It suggests that the company's profitability has been improving over the years, enabling it to comfortably meet its interest payments.
The most recent interest coverage ratio of 38.89 as of December 31, 2024, signifies that Axcelis Technologies Inc's operating income is 38.89 times higher than its interest expenses. This indicates a strong financial position and suggests that the company is at a low risk of defaulting on its debt obligations due to its robust ability to cover interest payments.
Overall, the trend of increasing interest coverage ratio is a positive indicator of Axcelis Technologies Inc's financial performance and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024