Boston Scientific Corp (BSX)
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 | 2,594,000 | 2,499,000 | 2,426,000 | 2,422,000 | 2,251,000 | 2,144,000 | 1,778,000 | 1,689,000 | 1,631,000 | 1,376,000 | 1,636,000 | 1,465,000 | 1,428,000 | 1,623,000 | 917,000 | 596,000 | 297,000 | 67,000 | 390,000 | 708,000 |
| Interest expense (ttm) | US$ in thousands | 305,000 | 290,000 | 277,000 | 270,000 | 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 |
| Interest coverage | 8.50 | 8.62 | 8.76 | 8.97 | 8.46 | 8.09 | 6.79 | 6.60 | 3.47 | 2.79 | 3.17 | 2.72 | 4.19 | 4.64 | 2.62 | 1.68 | 0.82 | 0.15 | 0.86 | 1.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,594,000K ÷ $305,000K
= 8.50
Interest coverage measures the company's ability to meet its interest obligations with its operating income. The interest coverage ratio for Boston Scientific Corp has shown fluctuations over the quarters provided.
Initially, in March 2020, the interest coverage ratio was 1.57, indicating that the company's operating income was just sufficient to cover its interest expense. However, by September 2020, the ratio significantly decreased to 0.15, indicating a potential difficulty in meeting interest payments from operating earnings.
Subsequently, there was a notable improvement in the interest coverage ratio, with values exceeding 1 from March 2021 onwards. The ratio continued to show an upward trend, reaching its peak at December 2024 with a ratio of 8.50. This significant improvement suggests that Boston Scientific Corp's operating income has become more than capable of comfortably covering its interest expenses.
Overall, the trend in Boston Scientific Corp's interest coverage ratio shows a positive trajectory, indicating a strengthening financial position in terms of meeting interest obligations from operational earnings. However, fluctuations in the ratio during the period could reflect varying levels of earnings and interest expenses impacting the company's financial stability.
Peer comparison
Dec 31, 2024