Fulgent Genetics Inc (FLGT)

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 — -72,695 184,675 104,339 290,158
Interest expense US$ in thousands 170 37,000 5,498 6,206 354
Interest coverage 0.00 -1.96 33.59 16.81 819.66

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $170K
= 0.00

Fulgent Genetics Inc's interest coverage ratio, a key indicator of the company's ability to meet its interest payments, has shown significant fluctuations over the past few years.

As of December 31, 2020, the interest coverage ratio was an impressive 819.66, indicating a strong ability to cover interest expenses with its earnings. However, this ratio sharply decreased to 16.81 by December 31, 2021, suggesting a potential strain on the company's ability to meet its interest obligations.

There was a slight improvement in the interest coverage ratio to 33.59 by December 31, 2022, but it remained below the level seen in 2020. By December 31, 2023, the interest coverage ratio dropped into negative territory, reaching -1.96. This suggests that the company's earnings were insufficient to cover its interest expenses during that period.

Furthermore, by December 31, 2024, the interest coverage ratio had plummeted to 0.00, indicating that Fulgent Genetics Inc's earnings were not enough to cover its interest payments, raising concerns about its financial health.

Overall, the fluctuating trend in Fulgent Genetics Inc's interest coverage ratio raises questions about its ability to meet its interest obligations, highlighting the importance of closely monitoring the company's financial performance and its ability to generate sufficient earnings to cover its debt servicing costs.