3D Systems Corporation (DDD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -406,004 | -117,019 | 321,880 | -139,019 | -60,906 |
| Interest expense | US$ in thousands | 3,118 | 2,848 | 2,340 | 4,391 | 4,442 |
| Interest coverage | -130.21 | -41.09 | 137.56 | -31.66 | -13.71 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-406,004K ÷ $3,118K
= -130.21
Interest coverage ratio is a metric used to assess a company's ability to meet its interest obligations on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt with its earnings. On the other hand, a lower or negative interest coverage ratio suggests that the company may have difficulty meeting its interest payments from its earnings.
Looking at the historical trend of 3D Systems Corporation's interest coverage ratio from 2019 to 2023, the company experienced significant fluctuations in its ability to cover its interest expenses. In 2019, the interest coverage ratio was negative at -13.71, indicating that the company's earnings were not sufficient to cover its interest payments. This was followed by further deterioration in 2020 with an even lower ratio of -31.66.
The company showed improvement in 2021 with a positive interest coverage ratio of 137.56, indicating a strong ability to cover its interest expenses with earnings. However, the ratio declined significantly in 2022 to -41.09, suggesting a reversal in the company's financial performance.
The most recent data for 2023 shows a further decline in the interest coverage ratio to -130.21, indicating a substantial decrease in the company's ability to meet its interest obligations from its earnings. This negative trend raises concerns about the company's financial health and its ability to service its debt in the future.
Overall, the fluctuating trend in 3D Systems Corporation's interest coverage ratio over the years highlights the company's vulnerability to changes in its financial performance and underscores the importance of closely monitoring its debt servicing capabilities.
Peer comparison
Dec 31, 2023