Glaukos Corp (GKOS)
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 | -122,366 | -120,094 | -84,714 | -35,895 | -118,199 |
| Interest expense | US$ in thousands | 10,040 | 13,633 | 13,720 | 13,372 | 14,115 |
| Interest coverage | -12.19 | -8.81 | -6.17 | -2.68 | -8.37 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-122,366K ÷ $10,040K
= -12.19
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Looking at the data provided for Glaukos Corp, we observe a concerning trend in the company's interest coverage over the years.
As of December 31, 2020, the interest coverage ratio was at a negative 8.37, indicating that the company's earnings were insufficient to cover its interest expenses. This negative figure persisted in the subsequent years, with the ratio deteriorating further to -2.68 in 2021, -6.17 in 2022, -8.81 in 2023, and -12.19 in 2024.
These consistently negative interest coverage ratios suggest that Glaukos Corp may be experiencing significant financial distress, as its earnings are insufficient to cover its interest obligations. It is essential for the company to address this issue promptly to avoid potential default on its debt or other financial difficulties in the future.
Peer comparison
Dec 31, 2024