Dynavax Technologies Corporation (DVAX)

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	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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,435	69,362	119,319	244,481	301,050	333,656	241,108	117,633	88,697	-25,464	-12,535	-43,456	-68,371	-83,865	-100,669	-116,301	-134,843	-145,415	-153,683	-152,859
Interest expense (ttm)	US$ in thousands	6,757	6,749	6,743	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	16,977	14,862	12,818	10,911
Interest coverage		0.36	10.28	17.70	36.28	44.72	49.60	35.89	14.44	7.94	-1.78	-0.72	-2.28	-3.59	-4.39	-5.27	-6.13	-7.94	-9.78	-11.99	-14.01

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,435K ÷ $6,757K
= 0.36

Based on the data provided, Dynavax Technologies Corp. had an interest coverage ratio of — for Q4 2023, Q3 2023, Q2 2023, and Q1 2023, indicating that the company's earnings before interest and taxes (EBIT) were not sufficient to cover its interest expenses during these periods.

In the previous quarters, Dynavax Technologies Corp. demonstrated improving interest coverage ratios, with ratios of 95.79 in Q3 2022, 44.94 in Q2 2022, and 17.42 in Q1 2022. These trends suggest that the company's ability to meet its interest obligations was significantly better in earlier periods compared to the most recent quarters.

A consistent or improving interest coverage ratio is generally considered favorable as it indicates that a company has sufficient earnings to cover its interest payments. However, a declining interest coverage ratio, as seen in the case of Dynavax Technologies Corp., could raise concerns about its financial health and ability to service its debt obligations moving forward. Further analysis of the company's financial performance and debt structure would be warranted to fully assess its financial stability.