FormFactor Inc (FORM)
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 | 101,997 | 140,616 | 123,826 | 102,918 | 78,030 | -19,409 | -14,697 | 24,026 | 46,298 | 93,992 | 111,647 | 98,415 | 99,025 | 88,298 | 87,451 | 89,988 | 86,039 | 90,582 | 78,282 | 65,240 |
Interest expense (ttm) | US$ in thousands | 418 | 1,697 | 1,697 | 3,179 | 4,455 | 2,874 | 3,026 | 1,663 | 579 | 618 | 617 | 614 | 602 | 629 | 671 | 726 | 864 | 1,058 | 1,287 | 1,638 |
Interest coverage | 244.01 | 82.86 | 72.97 | 32.37 | 17.52 | -6.75 | -4.86 | 14.45 | 79.96 | 152.09 | 180.95 | 160.29 | 164.49 | 140.38 | 130.33 | 123.95 | 99.58 | 85.62 | 60.83 | 39.83 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $101,997K ÷ $418K
= 244.01
The interest coverage ratio of FormFactor Inc has shown a fluctuating trend over the analyzed period. From March 31, 2020, to June 30, 2022, the interest coverage ratio consistently improved, indicating the company's ability to cover its interest expenses with operating income. However, from September 30, 2022, to December 31, 2024, there were notable declines in the interest coverage ratio, reaching negative values in the third and fourth quarters of 2023.
The substantial drop in the interest coverage ratio in the latter part of the analysis period suggests potential concerns regarding the company's ability to meet its interest obligations with its operating earnings during that time. It would be important to investigate the factors contributing to the decline in the interest coverage ratio during this period to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2024