Alkermes Plc (ALKS)
Interest coverage
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -182,307 |
| Interest expense (ttm) | US$ in thousands | 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 | 13,883 |
| Interest coverage | 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 | -13.13 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $248,422K ÷ $23,990K
= 10.36
The interest coverage ratio for Alkermes Plc has shown significant fluctuations over the periods provided. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt using its operating income.
In the recent period, the interest coverage ratio has been improving, with values well above 1, indicating that the company is generating sufficient operating income to cover its interest expenses. For example, in June 2024, the interest coverage ratio increased to 10.36, demonstrating a strong ability to meet interest payments.
However, there are some historic periods, such as in March 2023 and prior, where the interest coverage ratio was negative. This indicates that the company's operating income was not sufficient to cover its interest expenses during those periods, raising concerns about its financial health and ability to service its debt.
Overall, the trending improvement in the interest coverage ratio for Alkermes Plc is a positive sign, suggesting better financial stability and reduced risk of default on debt obligations. It is important for the company to continue to monitor and maintain this ratio at healthy levels to ensure ongoing financial solvency.
Peer comparison
Jun 30, 2024