Amkor Technology Inc (AMKR)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	500,523	914,276	763,962	448,489	233,170
Interest expense	US$ in thousands	59,000	58,563	51,508	64,168	72,520
Interest coverage		8.48	15.61	14.83	6.99	3.22

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $500,523K ÷ $59,000K
= 8.48

AMKOR Technology Inc.'s interest coverage has shown a strong increasing trend over the past five years, indicating the company's improved ability to cover its interest expenses. The interest coverage ratio has significantly increased from 3.54 in 2019 to 44.61 in 2023. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses by 44.61 times in 2023.

The substantial improvement in the interest coverage ratio signifies greater financial stability and reduced financial risk for AMKOR Technology Inc. It suggests that the company has become more efficient in generating profits and managing its debt obligations over the years. Investors and creditors may view this positively as it indicates the company's ability to meet its interest payments comfortably with its operating income.

The consistent increase in the interest coverage ratio reflects the company's strengthening financial position and better risk management strategies. AMKOR Technology Inc. seems to be in a favorable position to service its debt obligations and could potentially have access to cheaper financing options due to its improved creditworthiness.