Enovis Corp (ENOV)
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 | -26,801 | 46,880 | 81,241 | 50,870 | -376,513 |
| Interest expense | US$ in thousands | 19,749 | 24,052 | 29,112 | 52,824 | 119,503 |
| Interest coverage | -1.36 | 1.95 | 2.79 | 0.96 | -3.15 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-26,801K ÷ $19,749K
= -1.36
The interest coverage ratio of Enovis Corp has shown volatility over the past five years. In 2023, the ratio was at -2.45, indicating that the company's operating income was not sufficient to cover its interest expenses. This represents a deterioration from the previous year when the ratio was -3.77.
In 2021, the interest coverage ratio improved significantly to 3.92, indicating that the company's operating income was almost four times its interest expenses. This was a positive indicator of the company's ability to meet its debt obligations. However, this improvement was preceded by lower ratios in 2020 and 2019, indicating potential financial strain on the company's ability to cover interest payments.
Overall, Enovis Corp's interest coverage has shown fluctuations, and it is essential for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations in the future.
Peer comparison
Dec 31, 2023