FormFactor Inc (FORM)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	89,688	58,449	99,102	86,039	52,978
Interest expense	US$ in thousands	421	579	602	864	1,915
Interest coverage		213.04	100.95	164.62	99.58	27.66

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $89,688K ÷ $421K
= 213.04

FormFactor Inc's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's improving ability to meet its interest obligations with its operating income. The interest coverage ratio has substantially increased from 27.66 in 201
2019 to 213.04 in 2023, showcasing a remarkable improvement in the company's ability to cover its interest expenses. This indicates that FormFactor Inc has been generating significantly more operating income relative to its interest expenses, reflecting a lower financial risk and greater financial stability. The consistent enhancement in the interest coverage ratio suggests that the company's financial health and profitability have been strengthening over the years. Overall, the upward trajectory of FormFactor Inc's interest coverage ratio demonstrates a positive financial performance and management efficiency in meeting its debt obligations.