Bio-Rad Laboratories Inc (BIO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,293,600 | -754,165 | -4,666,160 | 5,450,610 | 4,929,500 |
| Interest expense | US$ in thousands | 48,900 | 49,439 | 38,114 | 1,551 | 21,861 |
| Interest coverage | -46.90 | -15.25 | -122.43 | 3,514.26 | 225.49 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-2,293,600K ÷ $48,900K
= -46.90
Interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt.
In the case of Bio-Rad Laboratories Inc, the interest coverage ratio has shown significant fluctuations over the years. In December 31, 2020, the ratio was very healthy at 225.49, signifying a strong ability to cover interest payments. However, in December 31, 2021, the ratio increased substantially to 3,514.26, indicating a significant improvement in the company's ability to service its debt.
Interestingly, by December 31, 2022, the interest coverage ratio fell to -122.43, suggesting that the company's ability to cover interest payments was severely strained. The ratios for December 31, 2023 and December 31, 2024 also remained negative (-15.25 and -46.90, respectively), indicating ongoing challenges in meeting interest obligations with current operating income levels.
Overall, the trend in Bio-Rad Laboratories Inc's interest coverage ratio shows both strengths and weaknesses, with significant fluctuations that may warrant further investigation into the company's financial health and debt management strategies.
Peer comparison
Dec 31, 2024