Catalent Inc (CTLT)
Interest coverage
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -90,000 | -749,000 | -981,000 | -1,199,000 | -949,000 | -163,000 | 183,000 | 629,000 | 652,000 | 730,000 | 761,000 | 919,000 | 885,000 | 829,000 | 747,800 | 479,600 | 441,600 | 394,000 | 333,800 | 298,800 |
| Interest expense (ttm) | US$ in thousands | 24,000 | 23,000 | 53,000 | 51,000 | 49,000 | 49,000 | 35,000 | 34,000 | 34,000 | 38,000 | 34,400 | 56,700 | 56,300 | 52,000 | 20,800 | 200 | 1,900 | 4,800 | 12,700 | 11,000 |
| Interest coverage | -3.75 | -32.57 | -18.51 | -23.51 | -19.37 | -3.33 | 5.23 | 18.50 | 19.18 | 19.21 | 22.12 | 16.21 | 15.72 | 15.94 | 35.95 | 2,398.00 | 232.42 | 82.08 | 26.28 | 27.16 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-90,000K ÷ $24,000K
= -3.75
The interest coverage ratio for Catalent Inc has exhibited significant volatility over the past several quarters, ranging from negative values to extremely high values. The interest coverage ratio measures the company's ability to pay its interest expenses with its operating income.
In the most recent quarter, the interest coverage ratio was reported at -3.75, indicating that the company's operating income was insufficient to cover its interest expenses. This is a concerning sign as it suggests that Catalent Inc may be facing financial difficulties in meeting its interest obligations from its current earnings.
The trend over the past few quarters shows a pattern of inconsistent performance in terms of interest coverage, with several quarters exhibiting negative ratios, reflecting financial strain. However, there were also quarters where the interest coverage ratio was significantly higher, particularly in the last few periods, suggesting improved ability to cover interest costs.
The extreme value of 2,398.00 reported for the interest coverage ratio in the December 2020 quarter may be an outlier or result from a significant one-time event that distorted the ratio. This highlights the importance of considering the context and underlying reasons for such anomalies when analyzing financial ratios.
Overall, the fluctuating nature of Catalent Inc's interest coverage ratio indicates a varying ability to meet interest payments from operating earnings, signaling potential financial instability and highlighting the need for further investigation and monitoring of the company's financial health.
Peer comparison
Sep 30, 2024