Cytek Biosciences Inc (CTKB)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -13,638 | 3,833 | 7,679 |
| Interest expense | US$ in thousands | 2,071 | 2,573 | 1,741 |
| Interest coverage | -6.59 | 1.49 | 4.41 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-13,638K ÷ $2,071K
= -6.59
Interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations. Looking at the trend for Cytek Biosciences Inc, the interest coverage ratio has been fluctuating over the past three years.
In 2021, the interest coverage ratio was 4.41, indicating that the company's operating income was more than sufficient to cover its interest expenses. However, the ratio declined significantly in 2022 to 1.49, suggesting that the company's ability to cover its interest expenses weakened.
The most recent data for 2023 shows a concerning trend with an interest coverage ratio of -6.59. A negative ratio implies that the company's operating income is insufficient to cover its interest expenses, which could be a red flag for potential financial distress.
Overall, the declining trend in Cytek Biosciences Inc's interest coverage ratio raises concerns about the company's ability to meet its interest obligations and may indicate increased financial risk.
Peer comparison
Dec 31, 2023