Glaukos Corp (GKOS)

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	-120,311	-124,935	-127,284	-126,323	-120,129	-114,592	-111,431	-124,645	-84,709	-75,767	-42,074	-13,815	-35,895	-28,476	-50,673	-83,902	-123,553	-141,858	-141,921	-100,964
Interest expense (ttm)	US$ in thousands	10,040	11,896	13,631	13,675	13,633	13,614	13,697	13,712	13,720	13,735	13,667	13,559	13,372	15,579	17,898	17,682	15,334	10,227	5,523	3,446
Interest coverage		-11.98	-10.50	-9.34	-9.24	-8.81	-8.42	-8.14	-9.09	-6.17	-5.52	-3.08	-1.02	-2.68	-1.83	-2.83	-4.75	-8.06	-13.87	-25.70	-29.30

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-120,311K ÷ $10,040K
= -11.98

Glaukos Corp's interest coverage ratio has been declining over the past few years, indicating a concerning trend in the company's ability to cover its interest expenses with its operating income. The interest coverage ratio has consistently stayed at low levels below 1, suggesting that the company is not generating enough operating income to cover its interest obligations.

This sustained low interest coverage ratio raises red flags regarding Glaukos Corp's financial health, as a ratio below 1 means the company is not generating sufficient earnings to meet its interest payments. A low interest coverage ratio can limit the company's financial flexibility, increase its risk of defaulting on debt obligations, and potentially signal financial distress.

It is crucial for Glaukos Corp to improve its interest coverage ratio by either increasing its operating income, reducing its interest expenses, or a combination of both strategies to enhance its financial stability and mitigate default risk. Additionally, investors, creditors, and other stakeholders should closely monitor this ratio to assess the company's ability to service its debt and sustain its operations effectively.