Artivion Inc (AORT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,713 | 3,240 | 2,060 | -476 | 16,544 |
| Interest expense | US$ in thousands | 25,299 | 18,224 | 16,887 | 16,698 | 14,900 |
| Interest coverage | 0.15 | 0.18 | 0.12 | -0.03 | 1.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,713K ÷ $25,299K
= 0.15
The interest coverage ratio of Artivion Inc has fluctuated over the past five years, indicating varying levels of ability to cover interest expenses with operating income. In 2023, the interest coverage ratio was reported at -0.35, which suggests that the company's operating income was insufficient to cover its interest payments. This is a concerning indicator as it implies that Artivion Inc may be facing significant challenges in meeting its interest obligations.
Looking back at the previous years, the interest coverage ratios have also been inconsistent. In 2022, the ratio was 0.34, indicating a slight improvement from 2021 when it was -0.46. However, it is important to note that both these ratios are below 1, signaling potential financial distress. In 2020, the interest coverage ratio stood at 0.15, reflecting a tight situation in terms of covering interest expenses.
The most favorable interest coverage ratio in the past five years was in 2019 at 1.20, suggesting that Artivion Inc had a comfortable cushion to cover its interest payments with operating income during that period.
Overall, the trend in Artivion Inc's interest coverage ratios raises concerns about the company's ability to service its debt obligations using its current earnings. Investors and creditors may view these ratios as a red flag, indicating the need for a closer examination of the company's financial health and sustainability.
Peer comparison
Dec 31, 2023