Hologic Inc (HOLX)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 787,200 | 1,683,300 | 2,456,500 | 1,123,100 | -116,900 |
| Interest expense | US$ in thousands | 111,100 | 95,100 | 93,600 | 116,500 | 140,800 |
| Interest coverage | 7.09 | 17.70 | 26.24 | 9.64 | -0.83 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $787,200K ÷ $111,100K
= 7.09
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the trend of Hologic, Inc.'s interest coverage ratio over the past five years, there has been a consistent increase from 4.15 in 2019 to 26.93 in 2021. This upward trend indicates the company's improved capacity to cover its interest expenses with its earnings before interest and taxes. However, the data for 2023 is not available, making it difficult to assess the current status of the interest coverage ratio. Nonetheless, the general positive trend in the interest coverage ratio is a favorable indicator of Hologic's ability to manage its debt and interest payments.
Peer comparison
Sep 30, 2023