Biomarin Pharmaceutical Inc (BMRN)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-71,351	-104,065	-124,106
Interest expense (ttm)	US$ in thousands	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	23,460	24,276	33,470
Interest coverage		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	-3.04	-4.29	-3.71

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $254,532K ÷ $17,179K
= 14.82

The interest coverage ratio for Biomarin Pharmaceutical Inc has shown significant variability over the periods analyzed. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. An interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

Analyzing the data provided, we can see that Biomarin Pharmaceutical Inc consistently maintained a healthy interest coverage ratio above 1 from Mar 31, 2024, back to Jun 30, 2020, except for Dec 31, 2018, where it fell below 1. The highest interest coverage ratio recorded was 14.82 on Mar 31, 2024, indicating a strong ability to meet interest obligations.

However, there were instances of lower interest coverage ratios, particularly in the periods of Sep 30, 2021, to Mar 31, 2021, where the ratios were negative. This suggests that during these periods, the company's operating income was insufficient to cover its interest expenses, indicating financial stress or potential liquidity issues.

Overall, Biomarin Pharmaceutical Inc should continue monitoring its interest coverage ratio closely to ensure it remains at a healthy level to meet its interest obligations and maintain financial stability.