Boston Scientific Corp (BSX)
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 | 2,669,000 | 2,257,000 | 1,605,000 | 1,425,000 | 389,000 |
| Interest expense | US$ in thousands | 387,000 | 272,000 | 464,000 | 349,000 | 468,000 |
| Interest coverage | 6.90 | 8.30 | 3.46 | 4.08 | 0.83 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,669,000K ÷ $387,000K
= 6.90
Based on the data provided, Boston Scientific Corp's interest coverage has shown variability over the years. In December 2020, the interest coverage ratio was 1.08, indicating that the company's operating income was only sufficient to cover its interest expenses marginally. However, there has been a significant improvement in the subsequent years.
In December 2021, the interest coverage ratio improved to 4.18, reflecting a stronger ability to meet interest obligations from operating income. This positive trend continued in December 2022 and 2023, with interest coverage ratios of 3.41 and 8.52 respectively, demonstrating a further enhancement of the company's financial health.
As of December 2024, Boston Scientific Corp maintained a robust interest coverage ratio of 8.48, indicating a comfortable buffer to cover interest expenses from operating profits. Overall, the improving trend in interest coverage ratios suggests that the company has been effectively managing its interest obligations and generating sufficient earnings to meet these financial commitments.
Peer comparison
Dec 31, 2024