Haemonetics Corporation (HAE)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	164,883	156,033	80,750	89,747	103,351
Interest expense	US$ in thousands	19,500	13,000	5,800	9,400	13,500
Interest coverage		8.46	12.00	13.92	9.55	7.66

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $164,883K ÷ $19,500K
= 8.46

The interest coverage ratio for Haemonetics Corporation has shown some fluctuation over the past five years, ranging from a low of 7.66 in 2020 to a high of 13.92 in 2022. The ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio is generally favorable as it suggests the company has more than enough earnings to cover its interest payments.

In this case, the decreasing trend from 2022 to 2020 may indicate a slight weakening in the company's ability to cover its interest expenses with operating income during those years. However, the ratio still remains above 1 in all years, indicating that Haemonetics Corporation has generated sufficient earnings to cover its interest payments comfortably.

Overall, while there has been some variability in the interest coverage ratio over the years, Haemonetics Corporation has maintained a relatively healthy level of interest coverage, which suggests a stable financial position in terms of meeting its interest obligations.