Alkermes Plc (ALKS)
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 | 299,811 | 248,422 | 374,488 | 281,151 | 239,318 | 122,135 | -154,183 | -154,264 | -134,713 | -94,995 | -56,052 | -28,087 | -70,496 | -42,395 | -74,093 | -87,878 | -47,462 | -101,941 | -115,171 | -183,455 |
| Interest expense (ttm) | US$ in thousands | 23,984 | 23,990 | 23,722 | 23,032 | 21,747 | 19,293 | 15,978 | 13,040 | 10,676 | 9,561 | 9,599 | 11,219 | 10,683 | 10,057 | 9,772 | 8,659 | 9,986 | 11,560 | 12,958 | 13,601 |
| Interest coverage | 12.50 | 10.36 | 15.79 | 12.21 | 11.00 | 6.33 | -9.65 | -11.83 | -12.62 | -9.94 | -5.84 | -2.50 | -6.60 | -4.22 | -7.58 | -10.15 | -4.75 | -8.82 | -8.89 | -13.49 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $299,811K ÷ $23,984K
= 12.50
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of paying its interest expenses.
Analyzing Alkermes Plc's interest coverage ratio over the past few quarters shows fluctuations. As of Sep 30, 2024, the interest coverage ratio was 12.50, indicating that the company generated 12.50 times the operating income needed to cover its interest expenses. This was an improvement compared to the previous quarter, Jun 30, 2024, when the ratio was 10.36.
Looking further back, the interest coverage ratio has experienced volatility, with negative ratios recorded in Mar 31, 2023, Dec 31, 2022, Sep 30, 2022, Jun 30, 2022, Mar 31, 2022, and Dec 31, 2021. Negative interest coverage ratios suggest that the company's operating income was not sufficient to cover its interest expenses during those periods, raising concerns about the company's ability to meet its debt obligations.
Overall, the recent improvement in the interest coverage ratio indicates a positive trend in Alkermes Plc's ability to cover its interest payments. However, the company should continue to closely monitor and manage its financial position to ensure sustainable performance and debt repayment capabilities.
Peer comparison
Sep 30, 2024