Hologic Inc (HOLX)
Interest coverage
| Sep 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 987,200 | 674,600 | 737,300 | 787,200 | 781,000 | 1,012,300 | 1,302,800 | 1,683,200 | 1,949,000 | 2,037,000 | 2,241,800 | 2,454,700 | 2,663,400 | 2,500,100 | 1,848,500 | 1,118,200 | 388,300 | 341,900 | -127,200 | -117,000 |
| Interest expense (ttm) | US$ in thousands | 122,100 | 114,100 | 109,000 | 111,100 | 107,100 | 102,100 | 97,500 | 95,100 | 93,700 | 92,600 | 91,300 | 93,700 | 96,000 | 101,800 | 111,800 | 116,500 | 126,300 | 134,000 | 137,500 | 140,800 |
| Interest coverage | 8.09 | 5.91 | 6.76 | 7.09 | 7.29 | 9.91 | 13.36 | 17.70 | 20.80 | 22.00 | 24.55 | 26.20 | 27.74 | 24.56 | 16.53 | 9.60 | 3.07 | 2.55 | -0.93 | -0.83 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $987,200K ÷ $122,100K
= 8.09
Hologic Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a better ability to meet interest obligations.
In recent periods, Hologic Inc's interest coverage ratio has generally been healthy, with values above 1, indicating that the company is generating enough operating income to cover its interest expenses. The trend shows an improving interest coverage ratio from 2019 to 2021, reaching its peak in the first half of 2021. This suggests that the company's operating income was comfortably able to cover its interest costs during this period.
However, the interest coverage ratio started to decline in the latter half of 2021 and continued to decrease into 2024. Despite the decline, the ratios were still above 1, indicating that the company's operating income remained sufficient to cover its interest expenses. The ratio dropping below 1 would be a red flag, suggesting that the company is struggling to generate enough operating income to cover its interest obligations.
Overall, while there have been fluctuations in Hologic Inc's interest coverage ratio, the company has generally maintained a strong position in terms of covering its interest expenses with its operating income. Investors and stakeholders should continue to monitor the trend to ensure the company's ability to meet its financial obligations.
Peer comparison
Sep 30, 2024