Catalyst Pharmaceuticals Inc (CPRX)

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	134,643	113,492	76,238	78,130	80,017	68,511	130,867	112,740	101,101	83,728	72,522	59,745	52,240	48,045	45,853	40,439	41,338	40,727	42,800	43,376
Interest expense (ttm)	US$ in thousands	0	1,704	1,704	1,704	3,408	4,526	5,431	5,755	4,144	1,322	417	93	0	336	336	336	672	735	1,128	1,578
Interest coverage		—	66.60	44.74	45.85	23.48	15.14	24.10	19.59	24.40	63.33	173.91	642.42	—	142.99	136.47	120.35	61.51	55.41	37.94	27.49

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $134,643K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt obligations. A higher ratio indicates a company is more capable of servicing its debt.

Analyzing the interest coverage ratio of Catalyst Pharmaceuticals Inc over the provided periods, we observe the following trends:

- The ratio has shown a generally increasing trend from March 31, 2020, to March 31, 2022, with a significant improvement in the company's ability to cover its interest expenses.
- The ratio peaked at a very high level of 642.42 on March 31, 2022, indicating a substantial improvement in the company's financial health.
- However, in the subsequent periods, the interest coverage ratio decreased, indicating a potential deterioration in the company's ability to cover its interest expenses.
- Notably, the ratio dropped to its lowest level of 15.14 on September 30, 2023, signifying a significant decline in the financial flexibility of the company.
- The ratio fluctuated in the range of 15.14 to 66.60 from September 30, 2023, to December 31, 2024, suggesting some variability in the company's ability to cover interest payments during these periods.
- The absence of data for December 31, 2021, and December 31, 2024, makes it challenging to assess the company's financial position accurately for those specific dates.

Overall, the trend in Catalyst Pharmaceuticals Inc's interest coverage ratio reflects periods of both strength and weakness in the company's ability to cover its interest expenses, highlighting the importance of consistently monitoring this ratio to assess the financial health and risk profile of the company.