Azenta Inc (AZTA)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -200,678 | -73,126 | 2,138,800 | 92,684 | 53,867 |
| Interest expense | US$ in thousands | — | 40 | 4,589 | 2,037 | 2,944 |
| Interest coverage | — | -1,828.15 | 466.07 | 45.50 | 18.30 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-200,678K ÷ $—K
= —
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
Azenta Inc's interest coverage ratio has varied significantly over the past five years, as follows:
- In 2020, the interest coverage ratio was 18.30, indicating that the company's EBIT was sufficient to cover its interest expenses 18.30 times over.
- The ratio declined sharply in 2021 to 45.50, suggesting a deterioration in the company's ability to cover interest expenses.
- In 2022, there was a significant improvement in the interest coverage ratio to 466.07, indicating a substantial increase in EBIT relative to interest expenses.
- However, in 2023, the interest coverage ratio showed a negative value of -1,828.15, which signifies that the company's EBIT was insufficient to cover its interest obligations.
- Unfortunately, there is no data available for 2024 to assess the current interest coverage ratio.
The negative interest coverage ratio in 2023 is a cause for concern, as it indicates a potentially unsustainable financial position. It suggests that Azenta Inc's EBIT was not adequate to cover its interest expenses during that period. Continued negative interest coverage ratios may raise red flags about the company's financial health and its ability to meet debt obligations. Further analysis of the company's financial performance and debt management strategies is warranted to understand the underlying reasons for the drastic fluctuations in the interest coverage ratio over the years.
Peer comparison
Sep 30, 2024