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 | ||
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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.
Peer comparison
Dec 31, 2024