Biomarin Pharmaceutical Inc (BMRN)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 504,846 | 368,864 | 300,419 | 254,532 | 205,898 | 166,541 | 123,868 | 88,013 | 165,546 | 116,750 | 71,685 | 50,948 | -60,013 | -39,396 | -48,725 | -100,923 | -19,688 | 19,572 | 83,950 | 83,146 |
| Interest expense (ttm) | US$ in thousands | 12,339 | 16,187 | 16,998 | 17,179 | 17,335 | 14,863 | 15,763 | 15,867 | 15,970 | 16,190 | 15,381 | 15,339 | 15,337 | 16,240 | 21,967 | 26,198 | 29,309 | 31,490 | 24,830 | 23,648 |
| Interest coverage | 40.91 | 22.79 | 17.67 | 14.82 | 11.88 | 11.21 | 7.86 | 5.55 | 10.37 | 7.21 | 4.66 | 3.32 | -3.91 | -2.43 | -2.22 | -3.85 | -0.67 | 0.62 | 3.38 | 3.52 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $504,846K ÷ $12,339K
= 40.91
The interest coverage ratio measures a company's ability to meet its interest payment obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the provided data for Biomarin Pharmaceutical Inc, the interest coverage ratio has shown significant fluctuations over the quarters.
From March 2020 to December 2021, the interest coverage ratio was consistently negative, indicating that the company's operating income was insufficient to cover its interest expenses during this period.
However, starting from March 2022, the interest coverage ratio turned positive and began to increase steadily, reaching a peak of 40.91 by December 2024. This significant improvement suggests that Biomarin Pharmaceutical Inc's operating income has strengthened, enabling it to comfortably cover its interest payments multiple times over.
Overall, the trend in Biomarin Pharmaceutical Inc's interest coverage ratio reflects a positive turnaround in the company's financial health, with a substantial improvement in its ability to meet interest obligations.
Peer comparison
Dec 31, 2024