Dynavax Technologies Corporation (DVAX)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	25,026	17,518	25,327	14,618	2,390	69,360	119,300	244,462	301,031	333,639	241,108	117,633	88,697	-24,231	11,718	-42,711	-56,178	-77,406	-115,281	-106,546
Interest expense (ttm)	US$ in thousands	5,931	6,757	7,039	7,039	7,316	6,470	6,464	6,738	6,732	6,727	6,718	8,144	11,176	14,302	17,420	19,043	19,062	19,123	19,108	18,974
Interest coverage		4.22	2.59	3.60	2.08	0.33	10.72	18.46	36.28	44.72	49.60	35.89	14.44	7.94	-1.69	0.67	-2.24	-2.95	-4.05	-6.03	-5.62

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,026K ÷ $5,931K
= 4.22

Dynavax Technologies Corporation's interest coverage ratio has shown significant volatility over the quarters. The company experienced negative interest coverage ratios in the range of -5.62 to -2.24 during the first half of 2021, indicating potential difficulty in meeting interest payment obligations with operating profits.

However, there was a notable improvement in the interest coverage ratio in the latter half of 2021, with ratios increasing to 7.94 by December 31, 2021, and reaching a peak of 49.60 by September 30, 2022. This improvement suggests the company was able to generate sufficient operating profits to cover its interest expenses comfortably.

Subsequently, the interest coverage ratio decreased but remained healthy, fluctuating between 0.33 and 4.22 from December 2023 to December 2024. This indicates that Dynavax Technologies Corporation continued to have the ability to cover its interest payments from its operating earnings, although the ratio decreased from the peak levels seen in 2022.

Overall, the trend in Dynavax Technologies Corporation's interest coverage ratio reflects both periods of financial strain and improvements in the company's ability to cover interest expenses, suggesting varying levels of financial stability and operational performance over the analyzed quarters.