CONMED Corporation (CNMD)
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 | 120,603 | -41,957 | 108,590 | 45,655 | 73,926 |
| Interest expense | US$ in thousands | 39,775 | 28,905 | 35,485 | 44,052 | 42,701 |
| Interest coverage | 3.03 | -1.45 | 3.06 | 1.04 | 1.73 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $120,603K ÷ $39,775K
= 3.03
The interest coverage ratio for Conmed Corp. has shown fluctuations over the past five years. In 2023, the interest coverage improved to 3.03 from 2.42 in 2022, indicating the company's ability to cover its interest expenses with operating earnings has strengthened. This trend aligns with the prior improvement seen from 2021 to 2022 when the ratio increased from 3.09 to 2.42.
However, in 2020, the interest coverage ratio was relatively low at 1.04, suggesting a weaker ability to cover interest expenses with operating income. The ratio then increased to 1.85 in 2019, indicating a slight improvement in the company's interest coverage from the previous year.
Overall, while there have been fluctuations in Conmed Corp.'s interest coverage ratio over the past five years, the recent improvement in 2023 is a positive sign of the company's ability to meet its interest payment obligations with its operating earnings.
Peer comparison
Dec 31, 2023