Azenta Inc (AZTA)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -73,126 | 2,138,800 | 92,684 | 53,867 | 436,836 |
| Interest expense | US$ in thousands | 40 | 4,589 | 2,037 | 2,944 | 22,250 |
| Interest coverage | -1,828.15 | 466.07 | 45.50 | 18.30 | 19.63 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-73,126K ÷ $40K
= -1,828.15
The interest coverage ratio is an important financial metric that measures a company's ability to meet its interest obligations on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
Looking at the interest coverage ratio of Azenta Inc over the past five years, we can observe the following trend:
Sep 30, 2023: The interest coverage ratio data is not available.
Sep 30, 2022: The interest coverage ratio data is not available.
Sep 30, 2021: The interest coverage ratio was -21.85, indicating that the company's earnings were insufficient to cover its interest expenses. This suggests financial distress or potentially unsustainable debt levels. A negative interest coverage ratio is a cause for concern as it implies that the company's operating income was not sufficient to cover its interest payments.
Sep 30, 2020: The interest coverage ratio improved significantly to 38.10, indicating a substantial increase in the company's ability to meet its interest obligations. This suggests that the company's operating income was 38.10 times larger than its interest expense, reflecting a strong ability to service its debt.
Sep 30, 2019: The interest coverage ratio was 2.30, indicating that the company's earnings were 2.30 times larger than its interest expense, highlighting a modest ability to cover its interest obligations.
It is important to note that the absence of data for Sep 30, 2023 and Sep 30, 2022 makes it challenging to assess the company's recent interest coverage performance.
In summary, the trend in Azenta Inc's interest coverage ratio shows significant fluctuation over the past five years. The negative interest coverage in 2021 raises concerns about the company's financial position and ability to meet its debt obligations. The substantial improvement in 2020 demonstrates a sudden boost in the company's ability to cover its interest expenses, while the relative stability in 2019 suggests a moderate ability to service its debt. Continued monitoring of the company's interest coverage is essential to assess its financial health and debt repayment capacity.
Peer comparison
Sep 30, 2023