Amkor Technology Inc (AMKR)

Interest coverage

		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	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	500,517	559,942	710,007	772,119	914,276	943,586	829,952	834,352	763,962	663,737	577,076	506,858	448,489	412,814	368,705	299,464	231,458	188,218	198,777	248,026
Interest expense (ttm)	US$ in thousands	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	67,067	67,651	70,292	72,520	72,952	75,734	78,208
Interest coverage		8.48	9.58	11.77	12.75	15.61	16.61	15.14	15.75	14.83	12.51	10.21	8.48	6.99	6.16	5.45	4.26	3.19	2.58	2.62	3.17

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $500,517K ÷ $59,000K
= 8.48

AMKOR Technology Inc.'s interest coverage ratio has shown a positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.

In Q4 2023, the interest coverage ratio was 44.61, indicating a strong ability to cover interest expenses. This was an improvement compared to the previous quarter where the ratio was 30.34. The trend continued to show improvement in each of the past four quarters, with the interest coverage ratio steadily increasing.

The company's interest coverage ratio has been consistently above 1, which indicates that AMKOR Technology Inc. has sufficient operating income to cover its interest expenses. A higher interest coverage ratio is generally seen as favorable as it suggests the company has a lower risk of defaulting on its debt obligations.

Overall, AMKOR Technology Inc.'s interest coverage ratio has shown a positive trend and indicates a strong ability to meet its interest payment obligations from its operating income.