ANI Pharmaceuticals Inc (ANIP)

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	46,971	42,065	19,122	-6,193	-35,283	-60,826	-59,393	-62,033	-39,793	-15,739	-9,375	-5,129	-16,016	-21,018	-16,492	4,107	16,351	32,467	35,253	33,224
Interest expense (ttm)	US$ in thousands	32,482	31,523	30,716	29,733	28,423	25,163	20,282	16,108	11,948	9,945	9,957	9,795	9,416	9,883	10,886	12,050	13,454	14,061	14,403	14,774
Interest coverage		1.45	1.33	0.62	-0.21	-1.24	-2.42	-2.93	-3.85	-3.33	-1.58	-0.94	-0.52	-1.70	-2.13	-1.51	0.34	1.22	2.31	2.45	2.25

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $46,971K ÷ $32,482K
= 1.45

The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt from its operating profits. A ratio above 1 indicates that the company's operating income is sufficient to cover its interest expenses.

From the data provided, ANI Pharmaceuticals Inc's interest coverage ratio has shown improvement over the past quarters, with the ratio increasing from negative figures in Q4 2022 to positive figures in Q4 2023. The interest coverage ratio has improved from -3.04 in Q1 2022 to 1.84 in Q4 2023.

This improvement suggests that ANI Pharmaceuticals Inc's operating income is now able to cover its interest expenses more comfortably, indicating a stronger financial position and lower financial risk. However, it is important to continue monitoring the trend to ensure sustainable financial health.