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.
Peer comparison
Dec 31, 2023