Amphastar P (AMPH)

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	196,536	187,971	134,021	121,206	116,709	102,100	115,862	106,016	83,631	49,374	18,992	5,312	5,317	11,900	7,451	69,667	62,781	64,072	65,613	-471
Interest expense (ttm)	US$ in thousands	27,158	18,230	5,094	1,889	1,846	1,486	1,447	1,136	885	805	453	402	374	329	176	165	119	77	179	255
Interest coverage		7.24	10.31	26.31	64.16	63.22	68.71	80.07	93.32	94.50	61.33	41.92	13.21	14.22	36.17	42.34	422.22	527.57	832.10	366.55	-1.85

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $196,536K ÷ $27,158K
= 7.24

Amphastar Pharmaceuticals Inc's interest coverage ratio has shown a fluctuating trend over the past eight quarters. The interest coverage ratio provides insight into the company's ability to meet its interest obligations with its operating income.

In Q4 2023, the interest coverage ratio was calculated at 8.99, indicating that the company generated sufficient operating income to cover its interest expenses approximately 9 times. This ratio improved compared to the previous quarter, Q3 2023, when it was 12.37.

A significant increase in the interest coverage ratio was observed in Q2 2023, with a ratio of 58.36, suggesting a substantial improvement in the company's ability to cover its interest expenses. However, this spike could be due to specific circumstances or one-time events and may not be sustainable in the long term.

Notably, in Q1 2023, the interest coverage ratio was not available, indicating a lack of data or potentially negative operating income, which would raise concerns about the company's ability to meet its interest obligations.

Looking back further, Q4 2022 had a high interest coverage ratio of 202.51, showing a strong ability to cover interest expenses, which is a positive sign for creditors and investors. The ratios for Q3 2022, Q2 2022, and Q1 2022 were also relatively high, indicating consistent performance in covering interest expenses during those periods.

Overall, while the interest coverage ratios exhibit variability, Amphastar Pharmaceuticals Inc generally has demonstrated the ability to cover its interest expenses comfortably in recent quarters. However, it is essential to monitor future trends to ensure the company can sustain its interest coverage levels effectively.