Enovis Corp (ENOV)
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 | -767,794 | -308,420 | -294,650 | -299,514 | -264,572 | -52,453 | -104,662 | -101,634 | -107,954 | -59,385 | -3,548 | 4,349 | 96,283 | 99,322 | 177,360 | 176,761 | 162,291 | 195,731 | 215,642 | 262,097 |
| Interest expense (ttm) | US$ in thousands | 57,100 | 52,284 | 46,986 | 34,093 | 19,749 | 21,604 | 22,170 | 22,640 | 32,087 | 41,567 | 48,773 | 62,032 | 72,593 | 82,620 | 94,647 | 105,126 | 104,262 | 111,330 | 117,591 | 122,478 |
| Interest coverage | -13.45 | -5.90 | -6.27 | -8.79 | -13.40 | -2.43 | -4.72 | -4.49 | -3.36 | -1.43 | -0.07 | 0.07 | 1.33 | 1.20 | 1.87 | 1.68 | 1.56 | 1.76 | 1.83 | 2.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-767,794K ÷ $57,100K
= -13.45
Enovis Corp's interest coverage ratio has shown a declining trend over the years, indicating a weakening ability to cover its interest expenses with operating income. The ratio started at a relatively healthy level of 2.14 in March 2020 but steadily decreased to a low of -13.45 by December 2024.
A positive interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest obligations. However, negative values suggest that the company's operating income is insufficient to cover its interest expenses, which can be a concerning sign for creditors and investors.
The significant decline in the interest coverage ratio over the years may raise red flags about Enovis Corp's financial health and ability to meet its debt obligations. It is crucial for the company to closely monitor and improve this ratio to ensure its long-term financial stability.
Peer comparison
Dec 31, 2024