FormFactor Inc (FORM)
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 | 79,830 | 82,756 | 58,449 | 99,102 | 86,039 |
| Interest expense | US$ in thousands | 418 | 421 | 579 | 602 | 864 |
| Interest coverage | 190.98 | 196.57 | 100.95 | 164.62 | 99.58 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $79,830K ÷ $418K
= 190.98
FormFactor Inc's interest coverage has shown a positive trend over the years, reflecting the company's ability to meet its interest obligations comfortably. The interest coverage ratio stood at 99.58 in December 31, 2020, improved to 164.62 by December 31, 2021, dipped slightly to 100.95 by December 31, 2022, and then showed a significant increase to 196.57 by December 31, 2023, and maintained a strong level at 190.98 by December 31, 2024.
This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest payments, highlighting its capacity to service its debt obligations. The consistent improvement in the interest coverage ratio signifies a positive financial performance and a reduced risk of default on debt repayments. Overall, the trend in FormFactor Inc's interest coverage reflects a healthy financial position and a solid ability to manage its interest expenses.
Peer comparison
Dec 31, 2024