BioLife Solutions Inc (BLFS)
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 | -70,825 | -145,541 | -35,160 | -6,241 | -3,193 |
| Interest expense | US$ in thousands | 13 | 18 | 121 | 5,412 | 5 |
| Interest coverage | -5,448.08 | -8,085.61 | -290.58 | -1.15 | -638.60 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-70,825K ÷ $13K
= -5,448.08
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a better ability to cover interest expenses. Analyzing BioLife Solutions Inc's interest coverage over the past five years reveals a concerning trend.
In 2019, the company had an interest coverage ratio of -638.60, indicating that its operating income did not sufficiently cover its interest expenses. This suggests a risk of defaulting on its debt obligations.
In 2020, the interest coverage ratio improved to -1.15 but remained negative, signaling continued difficulty in meeting interest payments from operating income alone.
The situation worsened in 2021 with an interest coverage ratio of -290.58, indicating a significant deterioration in the company's ability to service its debt. However, there was a drastic decline in 2022 with an interest coverage ratio of -8,085.61, suggesting a severe strain on the company's financial health.
The most recent data for 2023 shows an even further decline in the interest coverage ratio to -5,448.08, reflecting a continued inability to generate sufficient income to cover interest expenses, raising significant concerns about the company's financial viability.
In conclusion, BioLife Solutions Inc's interest coverage ratio has been consistently negative over the past five years, indicating a vulnerable financial position and a high risk of defaulting on its debt obligations. Further analysis of the company's financials and debt management strategies is warranted to address these alarming trends.
Peer comparison
Dec 31, 2023