Amkor Technology Inc (AMKR)

Interest coverage

		Dec 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	480,722	486,360	495,286	486,116	485,189	551,445	710,001	772,646	915,495	945,975	832,958	837,319	766,574	665,883	578,975	508,821	450,850	415,272	370,833	301,320
Interest expense (ttm)	US$ in thousands	64,945	63,344	60,723	59,272	59,000	58,465	60,343	60,582	58,563	56,795	54,812	52,983	51,508	53,040	56,548	59,796	64,168	66,134	66,718	69,359
Interest coverage		7.40	7.68	8.16	8.20	8.22	9.43	11.77	12.75	15.63	16.66	15.20	15.80	14.88	12.55	10.24	8.51	7.03	6.28	5.56	4.34

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $480,722K ÷ $64,945K
= 7.40

The interest coverage ratio for Amkor Technology Inc has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The ratio has increased steadily from 4.34 on March 31, 2020, reaching a peak of 16.66 on September 30, 2022. This upward trend indicates the company's improving ability to cover its interest expenses with its earnings.

However, starting from March 31, 2023, the interest coverage ratio started to decline, possibly indicating a decrease in the company's ability to cover interest costs with its operating income. The ratio decreased to 8.20 by March 31, 2024.

Overall, a high interest coverage ratio suggests that Amkor Technology Inc has a strong ability to meet its interest obligations using its operating income. However, the recent decline in the ratio warrants further investigation to understand the factors contributing to this trend and to assess the company's financial health and risk levels.