Catalyst Pharmaceuticals Inc (CPRX)

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	86,812	101,838	52,385	41,303	31,823
Interest expense	US$ in thousands	—	4,120	474	1,472	1,884
Interest coverage		—	24.72	110.52	28.06	16.89

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $86,812K ÷ $—K
= —

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.

Catalyst Pharmaceuticals Inc's interest coverage has fluctuated over the past five years, ranging from 16.89 to 110.52. This suggests some variability in the company's ability to cover its interest expenses using its earnings before interest and taxes (EBIT).

The significant increase in interest coverage from 2019 to 2021 (16.89 to 110.52) indicates a substantial improvement in the company's ability to meet its interest obligations. However, the ratio decreased in 2022 and was not reported for 2023, which could suggest a potential deterioration in the company's ability to cover its interest expenses.

Overall, further analysis of Catalyst Pharmaceuticals Inc's financial performance, debt structure, and interest expense trends is necessary to assess its long-term financial health and ability to service its debt.