Bio-Rad Laboratories Inc (BIO)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -2,293,571 -956,118 -1,729,293 1,150,832 759,821 437,738 429,915 444,027 475,106 473,461 536,890 541,359 516,205 577,393 531,783 476,068 435,445 315,572 266,784 258,099
Interest expense (ttm) US$ in thousands 48,900 49,076 49,300 49,379 49,439 48,761 48,026 46,403 38,114 26,795 15,558 5,201 1,551 5,890 11,192 16,569 21,861 23,222 23,019 23,120
Interest coverage -46.90 -19.48 -35.08 23.31 15.37 8.98 8.95 9.57 12.47 17.67 34.51 104.09 332.82 98.03 47.51 28.73 19.92 13.59 11.59 11.16

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-2,293,571K ÷ $48,900K
= -46.90

The interest coverage ratio measures a company's ability to meet interest payments on its outstanding debt using its operating income. A higher interest coverage ratio indicates that the company is more capable of covering its interest obligations.

Analyzing the data provided for Bio-Rad Laboratories Inc, we observe fluctuations in the interest coverage ratio over the periods from March 31, 2020, to December 31, 2024. The interest coverage ratio started at a healthy level of 11.16 in March 2020, showing the company's ability to cover its interest payments more than 11 times.

The ratio then increased consistently over the following quarters to reach its peak at 332.82 in December 31, 2021, indicating a significant improvement in the company's ability to cover interest expenses with its operating income. This suggests a strong financial position and a reduced risk of default due to lack of interest payment coverage.

However, from March 31, 2022, onwards, the interest coverage ratio started to decline, indicating a potential decrease in the company's ability to cover its interest payments comfortably. By the end of December 31, 2024, the interest coverage ratio turned negative, indicating that the company's operating income may no longer be sufficient to cover its interest obligations.

Considering the significant fluctuations in the interest coverage ratio for Bio-Rad Laboratories Inc, it is essential for stakeholders to monitor the company's financial performance closely to ensure sustainable debt management and liquidity position.