ADMA Biologics Inc (ADMA)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	115,242	84,289	44,615	21,632	1,340	-16,662	-25,364	-39,366	-46,498	-51,618	-58,024	-58,373	-62,402	-61,766	-63,309	-64,915	-55,522	-50,771	-44,986	-41,424
Interest expense (ttm)	US$ in thousands	6,947	13,093	22,681	25,027	24,549	23,731	22,005	19,279	16,858	14,577	13,251	13,058	12,851	12,643	12,463	11,984	11,606	11,164	10,170	8,994
Interest coverage		16.59	6.44	1.97	0.86	0.05	-0.70	-1.15	-2.04	-2.76	-3.54	-4.38	-4.47	-4.86	-4.89	-5.08	-5.42	-4.78	-4.55	-4.42	-4.61

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $115,242K ÷ $6,947K
= 16.59

The interest coverage ratio for ADMA Biologics Inc has fluctuated over the past years. The ratio indicates the company's ability to meet its interest payment obligations from its operating income. A higher ratio suggests a company is more capable of covering its interest expenses.

In recent quarters, ADMA Biologics Inc has shown improvement in its interest coverage ratio, with values exceeding 1. This indicates that the company's operating income is sufficient to cover its interest expenses. Notably, the ratio has improved significantly from negative values in the past to positive values in the most recent quarters, indicating a positive trend in the company's ability to meet its interest obligations.

However, it is essential to monitor this ratio over future quarters to ensure that the trend continues positively, as consistent improvement in interest coverage is crucial for financial stability and may impact the company's creditworthiness.