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.
Peer comparison
Dec 31, 2023