Collegium Pharmaceutical Inc (COLL)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	172,542	198,610	214,187	209,163	159,072	105,865	76,792	48,247	34,366	-12,537	-18,863	-13,566	17,640	66,758	72,235	72,386	56,464	39,379	13,869	-7,170
Interest expense (ttm)	US$ in thousands	73,974	70,601	72,975	79,251	83,339	84,633	82,911	78,809	63,213	47,395	33,464	21,124	21,014	23,994	26,942	29,780	28,882	21,356	13,521	5,498
Interest coverage		2.33	2.81	2.94	2.64	1.91	1.25	0.93	0.61	0.54	-0.26	-0.56	-0.64	0.84	2.78	2.68	2.43	1.95	1.84	1.03	-1.30

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $172,542K ÷ $73,974K
= 2.33

The interest coverage ratio for Collegium Pharmaceutical Inc has fluctuated over the period reported. The ratio was negative or below 1 in several quarters, indicating that the company may have had difficulty meeting its interest payments with its operating income during those periods. However, there seems to have been an improvement in the latter half of the period, with the interest coverage ratio consistently above 1.5. This suggests that the company's ability to cover its interest expenses with its earnings improved, indicating a better financial position and reduced risk of default. It is essential for Collegium Pharmaceutical Inc to maintain a healthy interest coverage ratio to ensure it can meet its financial obligations and sustain its operations effectively.