Integra LifeSciences Holdings (IART)

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	132,446	263,488	265,072	165,101	114,061
Interest expense	US$ in thousands	51,377	49,594	50,395	71,581	53,957
Interest coverage		2.58	5.31	5.26	2.31	2.11

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $132,446K ÷ $51,377K
= 2.58

Integra Lifesciences Holdings Corp's interest coverage ratio has fluctuated over the past five years. The company's interest coverage ranged from a high of 6.34 in 2022 to a low of 2.43 in 2020. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company is more capable of servicing its debt through its operating profits.

The trend in Integra Lifesciences' interest coverage suggests that the company's ability to cover its interest expenses improved from 2020 to 2022 but declined slightly in 2023. While an interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest payments, the fluctuations in the ratio may indicate changes in the company's profitability and financial health over the years.

In summary, the interest coverage ratio for Integra Lifesciences Holdings Corp has shown variability over the past five years, with the company demonstrating improvement in its ability to cover interest expenses in some years but experiencing a slight decline in 2023.