Exelixis Inc (EXEL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 604,617 | 170,885 | 201,484 | 286,666 | 110,060 |
| Interest expense | US$ in thousands | — | — | 53,743 | — | — |
| Interest coverage | — | — | 3.75 | — | — |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $604,617K ÷ $—K
= —
Based on the data provided, Exelixis Inc's interest coverage ratio has shown variability over the years. The interest coverage ratio for December 31, 2020, and December 31, 2021, is not available ("—"), indicating a lack of sufficient earnings to cover interest expenses during those periods.
However, for December 31, 2022, the interest coverage ratio improved to 3.75, suggesting that the company's operating income was 3.75 times its interest expenses for that year. This is a positive sign as a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating income.
Nevertheless, for December 31, 2023, and December 31, 2024, the interest coverage ratios are not available ("—") again, pointing towards potentially low or negative coverage of interest expenses by operating income during those years.
It is important for Exelixis Inc to monitor and maintain a healthy interest coverage ratio to ensure the company's ability to meet its interest payments and avoid financial distress. Further analysis and context would be needed to fully assess the company's financial health and its ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024