Biomarin Pharmaceutical Inc (BMRN)
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 | 484,214 | 205,898 | 165,546 | -60,013 | -19,688 |
| Interest expense | US$ in thousands | 12,339 | 17,335 | 15,970 | 15,337 | 29,309 |
| Interest coverage | 39.24 | 11.88 | 10.37 | -3.91 | -0.67 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $484,214K ÷ $12,339K
= 39.24
The interest coverage ratio of Biomarin Pharmaceutical Inc has displayed significant fluctuations over the past years. It indicates the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). Negative ratios in 2020 and 2021 imply that the company faced challenges in covering its interest expenses with its operating earnings. However, a notable improvement is seen by the significant increase in 2022, showing a substantial increase in EBIT relative to interest expenses. This positive trend continues over the subsequent years, surpassing industry benchmarks and demonstrating the company's strengthened capacity to service its debt obligations comfortably. The substantial improvement in the interest coverage ratio from 2020 to 2024 signifies enhanced financial stability and reduced risk of default for Biomarin Pharmaceutical Inc.
Peer comparison
Dec 31, 2024