BioLife Solutions Inc (BLFS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -7,129 | -70,825 | -145,541 | -35,160 | -6,241 |
| Interest expense | US$ in thousands | 719 | 13 | 18 | 121 | 18 |
| Interest coverage | -9.92 | -5,448.08 | -8,085.61 | -290.58 | -346.72 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-7,129K ÷ $719K
= -9.92
Based on the provided data, BioLife Solutions Inc's interest coverage has shown significant fluctuations in recent years. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Starting with a very low interest coverage ratio of -346.72 in December 31, 2020, the company experienced a slight improvement but remained negative at -290.58 by December 31, 2021. In the following years, the interest coverage ratio improved significantly but was still in negative territory, at -8,085.61 in December 31, 2022, -5,448.08 in December 31, 2023, and -9.92 in December 31, 2024.
The negative values suggest that BioLife Solutions Inc's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses over these periods. A persistently negative interest coverage ratio can indicate financial distress or an unsustainable debt burden. It is important for the company to closely monitor and manage its debt levels to improve its interest coverage ratio and ensure financial stability.
Peer comparison
Dec 31, 2024