Glaukos Corp (GKOS)
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 | -120,094 | -84,714 | -35,895 | -118,199 | -47,471 |
| Interest expense | US$ in thousands | 13,633 | 13,720 | 13,372 | 14,115 | 2,565 |
| Interest coverage | -8.81 | -6.17 | -2.68 | -8.37 | -18.51 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-120,094K ÷ $13,633K
= -8.81
The interest coverage ratio for Glaukos Corporation has shown a downward trend over the past five years, indicating a deteriorating ability to cover its interest expenses with its operating income. The negative values for the interest coverage ratio in all years suggest that the company's operating income was insufficient to cover its interest expenses during those periods.
In 2023, the interest coverage ratio of -27.68 indicates a significant decline compared to the previous years, reaching a particularly concerning level. This implies that the company's earnings before interest and taxes were substantially inadequate to cover its interest payments, raising red flags about its financial stability and ability to meet its debt obligations.
Moreover, the consistent negative trend in the interest coverage ratio from 2020 to 2023 highlights potential liquidity and solvency challenges for Glaukos Corporation. It signifies a persistent strain on the company's financial health, with a lack of earnings to support its interest costs.
Overall, the declining interest coverage ratio for Glaukos Corporation indicates increasing financial risk and potential difficulties in servicing its debt obligations, which may warrant further investigation and remedial action to improve the company's financial performance and stability.
Peer comparison
Dec 31, 2023