Celsius Holdings Inc (CELH)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 266,366 | -157,801 | -4,090 | 7,912 | -1,448 |
| Interest expense | US$ in thousands | 26,501 | 5,292 | 8 | 432 | 509 |
| Interest coverage | 10.05 | -29.82 | -511.25 | 18.31 | -2.84 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $266,366K ÷ $26,501K
= 10.05
Interest coverage ratio measures a company's ability to pay interest on its outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.
From the data provided, we observe that interest coverage was not available for Dec 31, 2023. In Dec 31, 2022, and Dec 31, 2021, the interest coverage ratio was not provided. However, in Dec 31, 2020, the interest coverage ratio was 85.99, indicating the company's ability to cover its interest expenses approximately 86 times from its operating income.
In contrast, in Dec 31, 2019, the interest coverage ratio was -7.83, which implies that the company's operating income was insufficient to cover its interest expenses, leading to a negative coverage ratio. This negative ratio suggests potential financial distress as the company's income was not sufficient to cover its interest obligations.
It is essential for investors and stakeholders to monitor the interest coverage ratio over consecutive periods to assess the company's ability to meet its interest payments and maintain financial stability. The lack of available data for the most recent period limits the ability to assess the current financial health of Celsius Holdings Inc.
Peer comparison
Dec 31, 2023