IDEXX Laboratories Inc (IDXX)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,141,040	1,097,130	898,765	932,028	694,524
Interest expense	US$ in thousands	31,205	35,952	38,793	29,374	32,539
Interest coverage		36.57	30.52	23.17	31.73	21.34

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,141,040K ÷ $31,205K
= 36.57

The interest coverage ratio for IDEXX Laboratories Inc has shown a consistently strong trend over the past few years, indicating the company's ability to comfortably meet its interest payment obligations. Starting at 21.34 in December 2020, the ratio improved to 31.73 by December 2021, suggesting a significant increase in earnings relative to interest expenses. Subsequently, the ratio slightly dipped to 23.17 by December 2022 but rebounded strongly to 30.52 by December 2023 and further improved to 36.57 by December 2024.

This pattern of improvement signifies that IDEXX Laboratories Inc has been generating sufficient earnings to cover its interest charges with a comfortable margin, reflecting a healthy financial position. The higher interest coverage ratios indicate the company's ability to manage its debt obligations effectively, providing investors and creditors with confidence in the company's financial stability.