Globus Medical (GMED)
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 | 219,701 | 201,850 | 236,251 | 180,407 | 115,472 |
| Interest expense | US$ in thousands | — | 20,130 | 14,233 | 9,297 | 13,952 |
| Interest coverage | — | 10.03 | 16.60 | 19.40 | 8.28 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $219,701K ÷ $—K
= —
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. Globus Medical's interest coverage ratio has shown fluctuations over the past few years. In 2020, the ratio was 8.28, indicating that the company generated 8.28 times more operating income than the amount required to cover its interest expenses.
By 2021, the interest coverage ratio improved significantly to 19.40, suggesting stronger financial health and a more comfortable cushion to cover interest obligations. However, in subsequent years, the ratio decreased to 16.60 in 2022 and 10.03 in 2023, indicating a potential increase in interest expenses relative to operating income.
It's worth noting that the data for December 31, 2024, is unavailable (indicated by "—"), which presents a limitation in assessing the most recent interest coverage. Overall, the trend in Globus Medical's interest coverage ratio suggests variations in the company's ability to cover interest payments, with improvements observed in some years and potential challenges in others. Monitoring this ratio going forward will be important to assess the company's financial stability and its ability to meet debt obligations.
Peer comparison
Dec 31, 2024