Edwards Lifesciences Corp (EW)

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	1,658,800	1,639,400	1,622,500	1,814,378	1,853,436	1,878,281	1,998,554	1,859,290	1,829,672	1,735,456	1,631,129	1,542,959	1,483,064	1,501,680	1,456,381	1,743,986	1,735,394	1,747,203	1,696,111	1,364,321
Interest expense (ttm)	US$ in thousands	0	27,800	27,800	36,900	47,100	27,200	34,100	25,900	16,300	8,900	2,800	2,900	2,600	17,900	17,900	18,700	22,900	35,000	37,000	37,600
Interest coverage		—	58.97	58.36	49.17	39.35	69.05	58.61	71.79	112.25	195.00	582.55	532.05	570.41	83.89	81.36	93.26	75.78	49.92	45.84	36.29

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,658,800K ÷ $0K
= —

The interest coverage ratio of Edwards Lifesciences Corp has shown a fluctuating trend over the reported periods. The ratio has generally been healthy, indicating the company's ability to meet its interest obligations from its operating income.

The interest coverage ratio was strong at the end of December 2021, with a ratio of 570.41, reflecting a significant earnings buffer to cover interest payments. However, the ratio declined substantially in the following quarters, dropping to 112.25 by the end of December 2022. This decrease suggests a potential reduction in earnings relative to interest expenses.

By March 2023, the interest coverage ratio fell further to 71.79, indicating a possible strain on the company's ability to cover interest costs comfortably. The trend continued with a ratio of 39.35 by the end of December 2023, signaling a heightened risk of potential difficulties in meeting interest payments.

The subsequent periods showed some improvement in the interest coverage ratio, reaching 58.36 by June 2024. While the ratio was still below the levels seen in 2021, this increase suggests a partial recovery in the company's ability to cover interest expenses from operating earnings.

Overall, the analysis of Edwards Lifesciences Corp's interest coverage ratio reveals fluctuations in the company's ability to cover its interest payments over the reported periods. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and its capacity to meet debt obligations.