Artivion Inc (AORT)
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 | 3,713 | 6,707 | 1,796 | -1,102 | 3,240 | -17,602 | 2,169 | 2,691 | 671 | 17,472 | 6,147 | 3,758 | -876 | -335 | 1,554 | 9,159 | 16,544 | 13,838 | 17,438 | 14,865 |
Interest expense (ttm) | US$ in thousands | 25,299 | 24,425 | 22,627 | 20,372 | 18,224 | 16,746 | 16,041 | 16,868 | 16,920 | 17,726 | 18,526 | 17,298 | 16,298 | 15,200 | 13,900 | 14,000 | 14,900 | 15,200 | 15,700 | 16,000 |
Interest coverage | 0.15 | 0.27 | 0.08 | -0.05 | 0.18 | -1.05 | 0.14 | 0.16 | 0.04 | 0.99 | 0.33 | 0.22 | -0.05 | -0.02 | 0.11 | 0.65 | 1.11 | 0.91 | 1.11 | 0.93 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,713K ÷ $25,299K
= 0.15
Artivion Inc's interest coverage ratio has fluctuated significantly over the past 8 quarters, as evidenced by the data provided. The interest coverage ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
In Q4 2023, Artivion Inc's interest coverage ratio was -0.35, indicating that the company's EBIT was insufficient to cover its interest expense, resulting in a negative coverage ratio. This suggests a high financial risk and potential difficulty in meeting debt obligations.
Similarly, the interest coverage ratios in Q3 2023 and Q2 2023 were -0.32 and -0.47, respectively, further highlighting the company's ongoing struggle to generate enough earnings to cover its interest payments.
The slight improvement seen in Q1 2023 with an interest coverage ratio of 0.03 indicates a marginal ability to cover interest expenses with EBIT. However, this ratio is still quite low and signifies a precarious financial position.
Comparing these figures to the ratios from the previous quarters, where the interest coverage remained negative, shows a persistent pattern of financial instability and potential liquidity challenges for Artivion Inc.
Overall, the trend in Artivion Inc's interest coverage ratio suggests ongoing financial distress and a critical need for the company to address its profitability and debt repayment capabilities.
Peer comparison
Dec 31, 2023