Hims Hers Health Inc (HIMS)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -29,453 | -68,697 | -110,795 | -17,977 | -71,605 |
| Interest expense | US$ in thousands | — | 2,988 | 0 | 10 | 369 |
| Interest coverage | — | -22.99 | — | -1,797.70 | -194.05 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-29,453K ÷ $—K
= —
The interest coverage ratio for Hims Hers Health Inc has been inconsistent over the past five years. It was not calculable for 2023 and 2021 due to either zero or negative interest expense compared to operating income. In 2022, the interest coverage ratio was a negative 22.99, indicating that the company's operating income was insufficient to cover its interest expenses. The significant decline in 2020 and 2019, with ratios of -1,797.70 and -194.05 respectively, suggests a severe lack of operating income relative to interest payments during those years. This erratic performance in interest coverage raises concerns about the company's ability to comfortably meet its interest obligations with its current earnings.