CONMED Corporation (CNMD)
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 | 120,604 | 69,322 | 63,270 | -51,701 | -41,956 | -3,645 | -2,309 | 110,951 | 108,589 | 95,985 | 99,694 | 52,652 | 45,653 | 48,599 | 39,924 | 79,596 | 73,925 | 72,190 | 63,094 | 61,439 |
| Interest expense (ttm) | US$ in thousands | 39,775 | 39,714 | 38,231 | 34,162 | 28,905 | 27,030 | 26,639 | 30,131 | 35,484 | 39,030 | 42,828 | 44,809 | 44,050 | 43,255 | 42,486 | 42,924 | 42,701 | 37,911 | 31,951 | 25,203 |
| Interest coverage | 3.03 | 1.75 | 1.65 | -1.51 | -1.45 | -0.13 | -0.09 | 3.68 | 3.06 | 2.46 | 2.33 | 1.18 | 1.04 | 1.12 | 0.94 | 1.85 | 1.73 | 1.90 | 1.97 | 2.44 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $120,604K ÷ $39,775K
= 3.03
Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio suggests that a company is more capable of meeting its interest obligations.
Conmed Corp.'s interest coverage ratio has fluctuated over the past eight quarters, ranging from a high of 4.16 in Q2 2022 to a low of 1.65 in Q2 2023. The trend indicates some inconsistency in the company's ability to cover its interest expenses with its operating income.
The ratio was relatively stable in 2022, with values above 3.0, indicating a healthy ability to meet interest payments. However, in the first three quarters of 2023, the interest coverage ratio decreased significantly, dropping below 2.0, which could raise concerns about the company's ability to comfortably cover its interest expenses.
It is important for stakeholders to monitor Conmed Corp.'s interest coverage ratio closely to ensure that the company remains financially stable and capable of servicing its debt obligations.
Peer comparison
Dec 31, 2023