ANI Pharmaceuticals Inc (ANIP)
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 | -4,610 | 46,808 | -8,904 | -48,936 | -15,570 |
| Interest expense | US$ in thousands | 17,602 | 26,940 | 28,052 | 11,922 | 9,452 |
| Interest coverage | -0.26 | 1.74 | -0.32 | -4.10 | -1.65 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-4,610K ÷ $17,602K
= -0.26
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A ratio below 1 indicates that the company is not generating enough operational income to cover its interest expenses.
Looking at the data provided for ANI Pharmaceuticals Inc, the interest coverage ratios for the past five years show a fluctuating trend.
- In December 2020, the interest coverage ratio was -1.65, indicating that the company's EBIT was insufficient to cover its interest expenses.
- By December 2021, the ratio worsened to -4.10, suggesting a deteriorating financial position in terms of covering interest costs.
- The situation improved in December 2022, but remained below 1 at -0.32, still signaling a challenge in meeting interest obligations.
- A positive change occurred by December 2023, with the interest coverage ratio rising to 1.74, indicating the company's EBIT was sufficient to cover its interest expenses.
- However, by December 2024, the ratio deteriorated again to -0.26, falling below 1 and suggesting a potential strain on the company's ability to cover interest payments.
Overall, the data highlights the volatility in ANI Pharmaceuticals Inc's ability to cover its interest expenses, with periods of inadequate coverage followed by some improvements but still indicating a need for careful monitoring of the company's financial health and debt management strategies.
Peer comparison
Dec 31, 2024