Celsius Holdings Inc (CELH)

Interest coverage ratio calculates the company's ability to comfortably meet its interest payments on outstanding debt. It is determined by dividing earnings before interest and taxes (EBIT) by interest expense. Looking at the data provided for Celsius Holdings Inc, the interest coverage ratio has fluctuated over the years, indicating the company's varying ability to cover its interest expenses.

As of December 31, 2020, Celsius Holdings Inc had an interest coverage ratio of 18.31, indicating that the company's earnings were 18.31 times higher than its interest expenses for that period, suggesting a strong ability to cover its interest payments.

However, the interest coverage ratios for December 31, 2021 (-511.25) and December 31, 2022 (-29.82) show a significant decline in the company's ability to meet its interest obligations. These negative ratios may signal potential financial distress, where the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial stability.

The interest coverage ratio for December 31, 2023, at 10.05, suggests an improvement from the previous years, indicating that Celsius Holdings Inc's earnings were 10.05 times higher than its interest expenses, reflecting a stronger ability to cover its interest payments.

Lastly, the absence of data or a ratio for December 31, 2024, requires further investigation to understand the company's current financial position and its ability to meet interest obligations.

In conclusion, the fluctuating interest coverage ratios for Celsius Holdings Inc highlight the importance of monitoring the company's financial health, profitability, and debt management practices to ensure sustainable operations and mitigate financial risks.

Peer comparison

Dec 31, 2024