IDEXX Laboratories Inc (IDXX)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,144,932	1,128,180	1,097,152	1,126,172	1,102,340	1,082,669	1,051,712	934,258	902,630	875,228	856,131	936,075	935,262	921,166	867,146	801,119	697,910	628,545	596,269	567,160
Interest expense (ttm)	US$ in thousands	31,205	32,972	33,922	36,038	40,838	44,885	47,236	45,004	39,289	33,285	29,421	28,960	29,548	29,899	30,875	32,848	32,956	32,422	31,402	30,093
Interest coverage		36.69	34.22	32.34	31.25	26.99	24.12	22.27	20.76	22.97	26.29	29.10	32.32	31.65	30.81	28.09	24.39	21.18	19.39	18.99	18.85

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,144,932K ÷ $31,205K
= 36.69

IDEXX Laboratories Inc's interest coverage ratio has shown a consistent upward trend over the past few years, indicating the company's ability to comfortably meet its interest obligations through its operating profits. The interest coverage ratio has increased from 18.85 in March 2020 to 36.69 in December 2024.

The company's interest coverage ratio has generally been strong, staying well above 1, which signifies that IDEXX Laboratories Inc has more than enough earnings to cover its interest expenses. This trend suggests that the company is managing its debt efficiently and is less vulnerable to potential financial risks associated with servicing its interest payments.

Overall, the increasing trend in IDEXX Laboratories Inc's interest coverage ratio reflects a healthy financial position and a solid ability to service its debt obligations without significant strain on its cash flows.