Halozyme Therapeutics Inc (HALO)

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 565,202 488,843 425,437 405,852 367,091 336,057 311,013 246,478 265,367 246,871 241,510 301,663 276,728 298,148 263,545 201,132 149,653 40,639 -23,544 -66,427
Interest expense (ttm) US$ in thousands 18,095 18,775 18,756 18,726 18,762 18,112 21,121 19,731 16,947 14,432 8,672 7,320 7,526 10,507 13,743 16,995 20,378 19,073 16,161 13,770
Interest coverage 31.24 26.04 22.68 21.67 19.57 18.55 14.73 12.49 15.66 17.11 27.85 41.21 36.77 28.38 19.18 11.83 7.34 2.13 -1.46 -4.82

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $565,202K ÷ $18,095K
= 31.24

The interest coverage ratio of Halozyme Therapeutics Inc has shown significant fluctuations over the period from March 31, 2020 to December 31, 2024. Initially, the company had a negative interest coverage ratio, indicating that its operating profits were not sufficient to cover its interest expenses. However, the company managed to improve its financial position, as evidenced by the increasing trend in the interest coverage ratio over time.

From March 31, 2021 onwards, Halozyme Therapeutics Inc's interest coverage ratio started to increase significantly, surpassing 1 and reaching higher levels. This improvement suggests that the company's earnings were more than adequate to cover its interest obligations, indicating a stronger financial position.

The interest coverage ratio continued to rise steadily until June 30, 2022, reaching a peak of 41.21, which indicates a very healthy ability to cover interest payments. However, there was a notable decline in the ratio in the subsequent periods, falling to 15.66 by December 31, 2022.

Despite the slight fluctuation observed in the interest coverage ratio in the following quarters, the company's overall ability to cover its interest expenses remained relatively stable and healthy, with the ratio staying above 15. Overall, the analysis of Halozyme Therapeutics Inc's interest coverage ratio suggests an improving financial health and a good ability to meet its interest obligations over the period under review.