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.