Halozyme Therapeutics Inc (HALO)

Interest coverage

		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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	367,068	336,034	311,013	246,478	265,865	247,369	242,008	302,161	256,044	277,464	242,864	180,475	149,680	40,666	-23,518	-66,391	-60,624	-27,949	-28,589	-34,685
Interest expense (ttm)	US$ in thousands	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	11,627	11,651	13,859	16,016
Interest coverage		19.56	18.55	14.73	12.49	15.69	17.14	27.91	41.28	34.02	26.41	17.67	10.62	7.35	2.13	-1.46	-4.82	-5.21	-2.40	-2.06	-2.17

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $367,068K ÷ $18,762K
= 19.56

Halozyme Therapeutics Inc.'s interest coverage has been generally high and consistent over the last eight quarters, ranging from a low of 12.45 in Q1 2023 to a high of 41.10 in Q1 2022. The company's ability to cover its interest expenses has been strong, with an average interest coverage ratio of 19.57 over the period. This indicates that the company is generating significantly more operating income than needed to cover its interest obligations, suggesting a lower risk of default on its debt. The high and stable interest coverage ratio reflects the company's strong financial position and ability to service its debt comfortably.