Haemonetics Corporation (HAE)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	164,883	170,195	167,496	178,925	156,033	139,977	132,349	110,127	80,750	40,376	45,150	79,422	89,747	136,929	137,411	128,368	103,351	101,200	88,613	64,950
Interest expense (ttm)	US$ in thousands	19,500	14,295	14,297	13,033	13,000	4,290	4,300	5,578	5,800	11,583	10,927	13,959	16,675	11,747	14,686	15,511	16,199	14,189	13,969	12,357
Interest coverage		8.46	11.91	11.72	13.73	12.00	32.63	30.78	19.74	13.92	3.49	4.13	5.69	5.38	11.66	9.36	8.28	6.38	7.13	6.34	5.26

March 31, 2024 calculation

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

The interest coverage ratio of Haemonetics Corporation shows a varying trend over the provided period. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of servicing its interest obligations.

From Mar 31, 2019 to Mar 31, 2024, the interest coverage ratio ranged from 3.49 to 32.63. The ratio reached its peak in Dec 31, 2022, at 32.63, signifying a robust ability to cover interest payments. However, the ratio fluctuated throughout the period, indicating some instability in the company's ability to consistently cover its interest expenses.

The significant decline in the ratio in the subsequent quarters to 3.49 in Mar 31, 2022, could be a point of concern, as it indicates a potential decrease in earnings relative to interest expenses. However, the ratio recovered thereafter, indicating an improvement in the company's ability to cover its interest obligations.

Overall, while Haemonetics Corporation's interest coverage has shown fluctuations, the company generally maintained a relatively healthy ratio above 1, indicating that it generated enough earnings to cover its interest expenses. Investors and creditors should continue monitoring the company's interest coverage ratio to assess its financial health.