Boston Scientific Corp (BSX)
Interest coverage
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,343,000 | 2,161,000 | 1,826,000 | 1,735,000 | 1,649,000 | 1,427,000 | 1,456,000 | 1,295,000 | 1,199,000 | 1,069,000 | 477,000 | 144,000 | -80,000 | 80,000 | 668,000 | 1,123,000 | 1,518,000 | 1,627,000 | 1,632,000 | 1,640,000 |
| Interest expense (ttm) | US$ in thousands | 266,000 | 265,000 | 262,000 | 256,000 | 470,000 | 493,000 | 516,000 | 538,000 | 341,000 | 350,000 | 350,000 | 355,000 | 361,000 | 444,000 | 453,000 | 451,000 | 472,000 | 357,000 | 320,000 | 288,000 |
| Interest coverage | 8.81 | 8.15 | 6.97 | 6.78 | 3.51 | 2.89 | 2.82 | 2.41 | 3.52 | 3.05 | 1.36 | 0.41 | -0.22 | 0.18 | 1.47 | 2.49 | 3.22 | 4.56 | 5.10 | 5.69 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,343,000K ÷ $266,000K
= 8.81
The interest coverage ratio measures Boston Scientific Corp.'s ability to meet its interest obligations using its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt with its operating income.
Analyzing Boston Scientific Corp.'s interest coverage ratio over the past eight quarters, we observe a generally improving trend. In Q4 2023, the interest coverage ratio was 9.95, which indicates a strong ability to cover interest payments with operating earnings. This ratio has been consistently increasing from Q1 2022 to Q4 2023, showcasing a positive trend in the company's ability to meet its interest obligations.
The company's interest coverage ratio was relatively low in Q1 and Q2 of 2022, standing at 3.66 and 3.81, respectively. However, since then, Boston Scientific Corp. has significantly improved its interest coverage, reaching ratios above 8. This improvement suggests enhanced profitability or more efficient management of interest-bearing debt.
Overall, the increasing trend in Boston Scientific Corp.'s interest coverage ratio reflects a strengthened financial position and a reduced risk of defaulting on interest payments. It indicates that the company has been able to generate sufficient earnings to cover its interest expenses comfortably in recent quarters.
Peer comparison
Dec 31, 2023