Hologic Inc (HOLX)
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 | 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 | 76,500 | 66,900 |
| Interest expense (ttm) | US$ in thousands | 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 | 140,300 | 139,700 |
| Interest coverage | 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 | 0.55 | 0.48 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $737,300K ÷ $109,000K
= 6.76
Hologic Inc's interest coverage ratio has shown variability over the past few years. The ratio indicates the company's ability to meet its interest obligations from its operating income.
In recent quarters, the interest coverage ratio has been relatively high, ranging from 6.76 to 27.74. This suggests that the company has been generating sufficient operating income to cover its interest expenses comfortably.
In particular, the interest coverage ratio significantly improved from negative values in the first quarter of 2020 to above 20 in the subsequent quarters. This indicates a positive trend in the company's ability to pay its interest expenses from its earnings.
Overall, the upward trend in the interest coverage ratio reflects Hologic Inc's improved financial health and stability, as it indicates a strong ability to service its debt obligations using its operational earnings.
Peer comparison
Dec 31, 2023