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 | ||
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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.
Peer comparison
Dec 31, 2024