Amkor Technology Inc (AMKR)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	495,961	470,287	915,495	766,574	450,850
Interest expense	US$ in thousands	64,945	59,000	58,563	51,508	64,168
Interest coverage		7.64	7.97	15.63	14.88	7.03

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $495,961K ÷ $64,945K
= 7.64

Amkor Technology Inc's interest coverage ratio has shown fluctuations over the past five years. The ratio was 7.03 as of December 31, 2020, indicating the company's ability to cover its interest payments was not very robust. However, there was a notable improvement in the following years, with the interest coverage ratio reaching 14.88 as of December 31, 2021, and further increasing to 15.63 as of December 31, 2022. This upward trend suggests that the company's earnings were more than sufficient to cover its interest expenses during these periods.

However, there was a slight decline in the interest coverage ratio to 7.97 as of December 31, 2023, and further down to 7.64 as of December 31, 2024. While these ratios still indicate that the company is generating enough earnings to cover its interest obligations, the declining trend may warrant closer monitoring to ensure the company's financial health and ability to meet its debt obligations in the future.