Cytek Biosciences Inc (CTKB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -21,110 | -16,172 | -7,253 | -1,821 | 3,833 | -32 | -15 | 4,439 |
| Interest expense (ttm) | US$ in thousands | 2,071 | 2,364 | 2,418 | 2,656 | 2,573 | 2,378 | 2,170 | 1,956 |
| Interest coverage | -10.19 | -6.84 | -3.00 | -0.69 | 1.49 | -0.01 | -0.01 | 2.27 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-21,110K ÷ $2,071K
= -10.19
The interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Based on the data provided for Cytek Biosciences Inc, the interest coverage ratios fluctuated significantly over the specified time periods. The negative interest coverage ratios in the earlier periods (Dec 31, 2023, Sep 30, 2023, Jun 30, 2023, Mar 31, 2023, Sep 30, 2022, Jun 30, 2022) indicate that the company's operating income was insufficient to cover its interest expenses during those periods.
The positive interest coverage ratios recorded in the later periods (Dec 31, 2022, Mar 31, 2022) signify an improvement in the company's ability to cover its interest costs with its operating income. However, the ratios were still relatively low, implying that Cytek Biosciences Inc may have faced challenges in meeting its interest obligations during those periods.
Overall, the trend in Cytek Biosciences Inc's interest coverage ratios suggests fluctuations in the company's ability to service its debt obligations with its operating income. It is important for the company to closely monitor and improve its interest coverage ratio to ensure financial stability and mitigate the risk of defaulting on its debt.
Peer comparison
Dec 31, 2023