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.
Peer comparison
Dec 31, 2023