Cytek Biosciences Inc (CTKB)

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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-20,524	-15,467	-19,331	-18,465	-18,280	-13,342	-7,253	-1,821	3,833	579	596	5,050	8,290	14,619	19,002	15,495	14,307
Interest expense (ttm)	US$ in thousands	1,388	1,088	1,564	1,839	2,071	2,364	2,418	2,656	2,573	2,378	2,170	1,956	1,741	1,579	1,140	708	419
Interest coverage		-14.79	-14.22	-12.36	-10.04	-8.83	-5.64	-3.00	-0.69	1.49	0.24	0.27	2.58	4.76	9.26	16.67	21.89	34.15

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-20,524K ÷ $1,388K
= -14.79

The interest coverage ratio for Cytek Biosciences Inc has shown a significant decline over the years, based on the provided data. Starting at a healthy level of 34.15 in December 2020, the ratio steadily decreased to 21.89 in March 2021, and further dropped to 16.67 in June 2021, indicating a higher level of financial risk.

From September 2021 to December 2024, the trend in interest coverage continued to deteriorate, falling below 1.0 in June 2022 and remaining negative thereafter. This suggests that Cytek Biosciences Inc may be facing challenges in generating enough operating income to cover its interest expenses, potentially indicating financial distress or liquidity issues.

The persistent decline in interest coverage raises concerns about the company's ability to meet its debt obligations and may impact its creditworthiness and access to future financing. Investors and creditors should closely monitor Cytek Biosciences Inc's financial performance and management of debt levels to assess the company's solvency and financial health.