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.