Catalyst Pharmaceuticals Inc (CPRX)

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 86,812 75,921 138,211 120,081 101,838 83,779 72,681 59,950 52,385 48,261 45,961 40,405 41,304 40,693 42,834 43,511 31,823 8,973 -13,055 -30,350
Interest expense (ttm) US$ in thousands 0 1,118 2,023 2,347 4,144 1,322 417 93 0 336 336 336 672 735 1,128 1,578 1,585 1,530 1,481 1,402
Interest coverage — 67.91 68.32 51.16 24.57 63.37 174.29 644.62 — 143.63 136.79 120.25 61.46 55.36 37.97 27.57 20.08 5.86 -8.81 -21.65

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $86,812K ÷ $0K
= —

Based on the data provided, Catalyst Pharmaceuticals Inc's interest coverage ratio has shown variability over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating earnings. A higher interest coverage ratio indicates a better capacity to cover interest expenses.

In Dec 2018, the interest coverage ratio was negative, implying that the company's operating earnings were not sufficient to cover its interest expenses. However, since then, there has been a general upward trend in the interest coverage ratio. Notably, the ratio saw a significant improvement in Jun 2022 and continued to rise until Sep 2023, reaching a peak of 644.62, indicating a substantial improvement in the company's ability to cover interest expenses.

The strong interest coverage ratio in recent quarters suggests that Catalyst Pharmaceuticals Inc has been generating ample operating earnings to comfortably cover its interest payments. This trend indicates improved financial health and reduced financial risk associated with meeting interest obligations. However, it is essential for the company to sustain this positive trend in order to maintain its financial stability and support future growth prospects.