ICU Medical Inc (ICUI)

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 24,428 -43,604 124,044 99,247 115,256
Interest expense US$ in thousands 102,727 70,805 858 1,753 549
Interest coverage 0.24 -0.62 144.57 56.62 209.94

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $24,428K ÷ $102,727K
= 0.24

The interest coverage ratio for ICU Medical, Inc. has fluctuated significantly over the past five years. In 2019, the interest coverage ratio was robust at 266.43, indicating the company's strong ability to cover its interest expenses with its earnings. However, there was a substantial decline in 2020 to 76.78, still suggesting a comfortable coverage level but lower than the previous year.

The interest coverage ratio dropped further in 2021 to 164.81, which is still considered healthy despite the decrease from the prior year. In 2022, the ratio turned negative at -0.05, indicating that the company's earnings were insufficient to cover its interest expenses, raising concerns about financial stability.

By the end of 2023, the interest coverage ratio stood at 0.50, remaining below the ideal level of 1.0. This indicates that ICU Medical, Inc. may be facing challenges in generating enough earnings to cover its interest obligations, potentially increasing the company's financial risk.

Overall, the trend in ICU Medical, Inc.'s interest coverage ratio shows fluctuation and downward movement in recent years, signaling the need for the company to closely monitor its financial health and take necessary steps to improve its ability to cover interest expenses in the future.


Peer comparison

Dec 31, 2023