IDEXX Laboratories Inc (IDXX)

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	1,102,760	899,830	932,463	694,755	553,201
Interest expense	US$ in thousands	41,581	39,858	29,808	33,125	31,055
Interest coverage		26.52	22.58	31.28	20.97	17.81

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,102,760K ÷ $41,581K
= 26.52

Idexx Laboratories, Inc.'s interest coverage ratio has shown a consistent positive trend over the past five years based on the data provided. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio suggests that the company is in a better position to cover its interest expenses.

In this case, the interest coverage ratio has demonstrated a strong performance, ranging from 18.05 in 2019 to 30.52 in 2023. This upward trend indicates that Idexx Laboratories has been generating sufficient earnings to comfortably cover its interest costs. The ratio reached its peak in 2023 at 30.52, reflecting a significant improvement in the company's ability to service its debt obligations.

Overall, the consistent increase in the interest coverage ratio suggests that Idexx Laboratories, Inc. has been effectively managing its interest expenses relative to its earnings, signifying a healthy financial position in terms of its ability to cover debt servicing costs.