Bio-Rad Laboratories Inc (BIO)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-800,661	-4,666,120	5,450,610	4,939,890	2,284,520
Interest expense	US$ in thousands	49,439	38,114	1,551	21,861	23,416
Interest coverage		-16.19	-122.43	3,514.26	225.97	97.56

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $-800,661K ÷ $49,439K
= -16.19

Bio-Rad Laboratories Inc.'s interest coverage ratio fluctuated over the past five years, ranging from 6.83 to 315.56. The interest coverage peaked in 2021 at an impressive 315.56, indicating that the company's operating income was significantly higher than its interest expense that year. However, this was followed by a notable decrease in 2023 to 6.83, suggesting that the company may have faced challenges generating enough operating income to cover its interest obligations efficiently.

Overall, the trend in Bio-Rad Laboratories Inc.'s interest coverage ratio indicates some variability in the company's ability to cover its interest expenses with its operating income. It is important for the company to closely monitor and manage its interest coverage ratio to ensure sustainable financial health and to mitigate risks associated with potential liquidity issues.