Amphastar P (AMPH)

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	205,419	196,536	116,709	83,631	5,317
Interest expense	US$ in thousands	6,832	27,158	1,846	885	374
Interest coverage		30.07	7.24	63.22	94.50	14.22

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $205,419K ÷ $6,832K
= 30.07

Based on the data provided, the interest coverage ratio for Amphastar P has fluctuated over the past five years.

In December 2020, the interest coverage ratio was 14.22, indicating that the company generated 14.22 times the earnings necessary to cover its interest expenses for that period. This suggests a relatively healthy interest coverage position.

By December 2021, the interest coverage ratio significantly improved to 94.50, demonstrating a substantial increase in the company's ability to cover its interest payments, which is a positive sign of financial strength.

In the following years, the interest coverage ratio remained relatively strong, with a ratio of 63.22 in December 2022 and 30.07 in December 2024.

However, there was a significant decline in the interest coverage ratio to 7.24 in December 2023. This marked decrease may indicate potential difficulties in meeting interest obligations with operating income during that specific period.

Overall, the trend in the interest coverage ratio for Amphastar P shows variations over the years, with some years indicating robust coverage while others showing potential challenges in meeting interest expenses from operating income alone. It would be essential for stakeholders to closely monitor this ratio to assess the company's ability to manage its debt obligations in the future.