Hologic Inc (HOLX)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 987,200 | 787,200 | 1,683,300 | 2,456,500 | 1,123,100 |
| Interest expense | US$ in thousands | 122,100 | 111,100 | 95,100 | 93,600 | 116,500 |
| Interest coverage | 8.09 | 7.09 | 17.70 | 26.24 | 9.64 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $987,200K ÷ $122,100K
= 8.09
Hologic Inc's interest coverage ratio has exhibited fluctuating trends over the past five years. The ratio stood at 8.09 in September 2024, indicating the company generated 8.09 times the earnings necessary to cover its interest expenses for that period. This figure represents a slight increase from the previous year's 7.09, suggesting a stronger ability to service its interest payments.
Compared to September 2022, when the interest coverage ratio was at a significantly higher 17.70, the current ratio indicates a relative decrease in the company's ability to cover interest expenses. However, it is worth noting that in September 2022, the ratio was exceptionally high, possibly due to certain factors specific to that year.
Looking further back, the interest coverage ratio was 26.24 in September 2021, indicating a robust ability to cover interest expenses, and significantly higher when compared to the most recent year. In September 2020, the ratio was 9.64, showing a similar trend to the latest observations.
Overall, while the current interest coverage ratio of 8.09 for Hologic Inc is lower than some previous years, it still demonstrates the company's ability to comfortably meet its interest obligations. Monitoring future trends in this ratio will be important to assess the company's financial health and debt management capabilities.
Peer comparison
Sep 30, 2024