Bruker Corporation (BRKR)

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	253,100	561,300	429,100	404,400	236,600
Interest expense	US$ in thousands	47,900	16,400	16,100	14,300	14,400
Interest coverage		5.28	34.23	26.65	28.28	16.43

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $253,100K ÷ $47,900K
= 5.28

Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Looking at Bruker Corporation's interest coverage over the past five years, we can observe a fluctuating trend. In 2020, the interest coverage ratio was 16.43, indicating that the company was comfortably able to cover its interest payments. Over the next few years, the interest coverage ratio improved significantly, reaching a peak of 34.23 in 2023, reflecting a strong ability to handle interest expenses.

However, there was a notable decline in 2024, with the interest coverage ratio dropping to 5.28. This decrease suggests that Bruker Corporation may have faced challenges in meeting its interest obligations compared to previous years.

Overall, Bruker Corporation's interest coverage ratio demonstrates varying levels of ability to cover its interest payments over the past five years, with the company showing strong performance in some years and experiencing a decline in others. Further analysis of the underlying factors driving these fluctuations would be necessary to provide a more detailed assessment of the company's financial health.