ICU Medical Inc (ICUI)

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	17,010	28,971	6,663	3,991	-46,881	-22,834	18,758	55,167	124,166	130,620	119,309	105,923	99,247	90,027	96,134	102,270	115,256	81,875	50,706	52,688
Interest expense (ttm)	US$ in thousands	102,727	95,313	88,946	80,265	70,805	46,669	29,029	13,752	858	662	1,110	1,718	1,753	1,721	1,244	612	549	572	716	707
Interest coverage		0.17	0.30	0.07	0.05	-0.66	-0.49	0.65	4.01	144.72	197.31	107.49	61.65	56.62	52.31	77.28	167.11	209.94	143.14	70.82	74.52

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $17,010K ÷ $102,727K
= 0.17

Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio is generally considered more favorable as it suggests that the company is generating sufficient operating income to cover its interest payments.

Based on the data provided, ICU Medical, Inc.'s interest coverage fluctuated over the past eight quarters. The interest coverage ratio was below 1 in five out of the eight quarters, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. This may raise concerns about the company's ability to meet its debt obligations through its operating income alone.

The interest coverage ratio improved significantly in Q1 2022, with a ratio of 7.22, indicating a strong ability to cover interest expenses. However, this improvement was not sustained, as the ratio decreased sharply in subsequent quarters.

Overall, the data suggests that ICU Medical, Inc. has experienced variability in its ability to cover interest expenses with operating income, with some quarters showing a stronger performance than others. Monitoring and improving this ratio over time could be important for the company's financial health and debt management.