Cytek Biosciences Inc (CTKB)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | -13,638 | 3,833 | 9,157 | 14,763 |
| Interest expense | US$ in thousands | 5,239 | 2,071 | 2,573 | 1,741 | 333 |
| Interest coverage | 0.00 | -6.59 | 1.49 | 5.26 | 44.33 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $5,239K
= 0.00
The interest coverage ratio of Cytek Biosciences Inc has shown a significant decline over the years, from a strong level of 44.33 in December 31, 2020, indicating a comfortable ability to cover interest obligations, to a concerning level of 0.00 in December 31, 2024, which suggests the company may not have sufficient earnings to cover its interest expenses. This downward trend indicates a deterioration in the company's ability to service its debt with operating income. Specifically, the ratio falling below 1, as seen in 2023 and 2024, indicates that the company's operating income is insufficient to cover its interest expenses, potentially raising solvency concerns. It is important for Cytek Biosciences Inc to address this trend to ensure its long-term financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024