Exelixis Inc (EXEL)

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	604,617	523,199	369,541	171,517	170,885	41,019	141,215	147,071	201,484	366,206	335,214	374,516	286,666	194,319	100,118	52,644	110,060	163,079	321,265	337,720
Interest expense (ttm)	US$ in thousands	0	26,303	26,303	26,303	52,606	37,623	47,121	51,923	27,442	16,122	6,624	1,822	0	0	0	0	0	0	0	0
Interest coverage		—	19.89	14.05	6.52	3.25	1.09	3.00	2.83	7.34	22.71	50.61	205.55	—	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $604,617K ÷ $0K
= —

The interest coverage ratio for Exelixis Inc has shown fluctuating values over the past few years. As of March 31, 2022, the interest coverage ratio stood at a strong level of 205.55, indicating the company's ability to cover its interest expenses comfortably. This was followed by a decline in the ratio to 50.61 as of June 30, 2022, still reflecting a healthy coverage of interest payments.

However, a sharp decrease in the interest coverage ratio was observed in the subsequent quarters, dropping to 2.83 as of March 31, 2023, and further dipping to 1.09 by September 30, 2023. These lower ratios suggest a potential strain on Exelixis Inc's ability to cover its interest expenses with its operating income.

There was a slight recovery in the interest coverage ratio by the end of December 31, 2023, reaching 3.25, but it remained relatively low compared to previous periods. The ratios improved further in the following quarters, showing more stability with values of 6.52 as of March 31, 2024, and 14.05 as of June 30, 2024, indicating an enhanced ability to cover interest obligations.

Overall, the trend in Exelixis Inc's interest coverage ratio indicates some variability and fluctuations in the company's ability to handle its interest payments, with recent improvements suggesting a more favorable outlook for managing interest costs.