BioLife Solutions Inc (BLFS)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -70,823 | -106,939 | -89,896 | -151,179 | -145,541 | -114,735 | -114,154 | -42,146 | -35,160 | -22,104 | -12,075 | -23,900 | -610 | 6,241 | 17,641 | 38,274 | -3,193 | -3,592 | -12,667 | -15,635 |
| Interest expense (ttm) | US$ in thousands | 13 | 451 | 461 | 470 | 620 | 283 | 467 | 579 | 432 | 332 | 141 | 20 | 5 | 4 | 2 | 3 | 5 | 6 | 6 | 6 |
| Interest coverage | -5,447.92 | -237.12 | -195.00 | -321.66 | -234.74 | -405.42 | -244.44 | -72.79 | -81.39 | -66.58 | -85.64 | -1,195.00 | -122.00 | 1,560.25 | 8,820.50 | 12,758.00 | -638.60 | -598.67 | -2,111.17 | -2,605.83 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-70,823K ÷ $13K
= -5,447.92
Based on the interest coverage ratios for BioLife Solutions Inc provided in the table, it is evident that the company has experienced significant fluctuations in its ability to cover its interest expenses over the past few years. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt obligations. A higher ratio indicates a stronger ability to cover interest expenses.
From the data, it is clear that BioLife Solutions Inc has demonstrated a concerning trend in its interest coverage ratios, with several periods showing negative values. This indicates that the company's operating income was insufficient to cover its interest expenses during those periods. Negative interest coverage ratios are a red flag for investors and creditors as they suggest financial distress and an increased risk of default on debt obligations.
The company experienced a sharp decline in its interest coverage ratio in the most recent period, reaching a significant negative value. This suggests a severe deterioration in the company's financial situation, potentially due to declining profitability or increased interest expenses.
Overall, the erratic and negative interest coverage ratios displayed by BioLife Solutions Inc raise concerns about its financial stability and ability to meet its debt obligations. Investors and stakeholders should closely monitor the company's financial performance and management of its debt levels to mitigate risks associated with its deteriorating interest coverage.
Peer comparison
Dec 31, 2023