Haemonetics Corporation (HAE)

Interest coverage

		Mar 31, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	121,265	172,429	159,378	164,979	178,882	162,973	160,274	178,925	156,033	139,977	132,270	110,048	80,671	40,297	45,150	79,422	89,747	136,929	137,411	128,368
Interest expense (ttm)	US$ in thousands	23,660	29,591	22,428	17,906	13,018	9,118	8,224	11,426	14,630	15,873	19,081	17,996	17,121	19,471	18,259	17,497	16,834	14,659	14,686	15,511
Interest coverage		5.13	5.83	7.11	9.21	13.74	17.87	19.49	15.66	10.67	8.82	6.93	6.12	4.71	2.07	2.47	4.54	5.33	9.34	9.36	8.28

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $121,265K ÷ $23,660K
= 5.13

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with earnings.

Analyzing the interest coverage data of Haemonetics Corporation from June 30, 2020, to March 31, 2025, we observe fluctuations in the ratio over time:

- The ratio started at a healthy level of 8.28 on June 30, 2020, and showed a slight increase to 9.36 by September 30, 2020.

- From December 31, 2020, to June 30, 2021, there was a decline in the interest coverage ratio, which dropped to 4.54. This decrease continued until reaching a low of 2.07 on December 31, 2021, indicating a potential strain in meeting interest obligations.

- Subsequently, the interest coverage ratio improved, reaching 19.49 on September 30, 2023, indicating a significant improvement in the company's ability to cover interest expenses.

- However, by March 31, 2024, the ratio decreased to 5.13, suggesting a potential need for further monitoring to ensure the company can sustainably meet its interest payments.

Overall, the trend in Haemonetics Corporation's interest coverage ratio demonstrates fluctuation over the period, with both strengths and weaknesses in its ability to cover interest expenses. Investors and stakeholders should closely monitor this ratio to gauge the company's financial health and ability to meet its debt obligations.