Fulgent Genetics Inc (FLGT)

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 -75,357 -92,709 -67,277 -71,838 -78,393 -78,134 -83,111 -42,291 182,823 366,876 523,031 601,942 672,021 747,105 652,536 558,912 290,158 63,840 1,826 -519
Interest expense (ttm) US$ in thousands 224 36,479 36,519 36,725 40,500 7,125 8,476 9,228 5,498 2,443 1,534 1,180 1,417 1,971 1,896 1,567 1,526 1,186 765 490
Interest coverage -336.42 -2.54 -1.84 -1.96 -1.94 -10.97 -9.81 -4.58 33.25 150.17 340.96 510.12 474.26 379.05 344.16 356.68 190.14 53.83 2.39 -1.06

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-75,357K ÷ $224K
= -336.42

Fulgent Genetics Inc's interest coverage ratio experienced a significant improvement over the period from March 31, 2020, to December 31, 2021, rising from a negative value to a substantial figure of 474.26. The company's interest coverage ratio remained robust in the subsequent quarters of 2022, ranging from 340.96 to 510.12. However, a notable decline was observed in the interest coverage ratio in the fourth quarter of 2022, dropping to 33.25. This decline continued into the following quarters of 2023 and 2024, with interest coverage ratios turning negative.

The negative interest coverage ratios in the latter part of 2023 and throughout 2024 indicate that Fulgent Genetics Inc may be facing challenges in generating sufficient operating income to cover its interest expenses. It suggests a potential vulnerability in meeting its interest obligations with the current level of operational earnings. Further analysis and monitoring of the company's financial performance and debt management strategies would be necessary to understand the reasons behind this deteriorating trend in interest coverage.