3D Systems Corporation (DDD)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -412,470 | -406,004 | -106,753 | -126,874 | -127,183 | -117,019 | -92,817 | -76,320 | -54,342 | -33,069 | -28,496 | -78,892 | -102,704 | -118,963 | -124,393 | -68,723 | -54,017 | -57,104 | -59,424 | -58,474 |
| Interest expense (ttm) | US$ in thousands | 2,883 | 3,118 | 2,852 | 2,851 | 2,896 | 2,944 | 4,266 | 3,653 | 3,000 | 2,407 | 4,139 | 4,249 | 4,351 | 4,388 | 4,590 | 4,537 | 4,488 | 4,442 | 1,516 | 1,622 |
| Interest coverage | -143.07 | -130.21 | -37.43 | -44.50 | -43.92 | -39.75 | -21.76 | -20.89 | -18.11 | -13.74 | -6.88 | -18.57 | -23.60 | -27.11 | -27.10 | -15.15 | -12.04 | -12.86 | -39.20 | -36.05 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-412,470K ÷ $2,883K
= -143.07
The interest coverage ratio for 3D Systems Corporation has been consistently below 1 for the past several quarters, indicating that the company is not generating enough operating income to cover its interest expenses. This raises concerns about the company's ability to meet its interest obligations with its current level of earnings. The declining trend in the interest coverage ratio over the periods analyzed suggests worsening financial health and increasing financial risk for the company. It is crucial for 3D Systems to improve its interest coverage ratio by either increasing its earnings or reducing its interest expenses to ensure its long-term financial stability and sustainability.
Peer comparison
Mar 31, 2024