Illumina Inc (ILMN)
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 | -812,000 | -1,136,000 | -2,640,000 | -1,073,000 | -1,040,000 | -1,050,000 | -3,953,000 | -4,514,000 | -4,310,000 | -4,051,000 | 49,000 | 903,000 | 945,000 | 1,160,000 | 952,000 | 905,000 | 906,000 | 871,000 | 926,000 | 1,114,000 |
| Interest expense (ttm) | US$ in thousands | 18,000 | 36,000 | 55,000 | 74,000 | 76,000 | 67,000 | 54,000 | 41,000 | 27,000 | 31,000 | 39,000 | 49,000 | 62,000 | 65,000 | 62,000 | 57,000 | 49,000 | 44,000 | 44,000 | 48,000 |
| Interest coverage | -45.11 | -31.56 | -48.00 | -14.50 | -13.68 | -15.67 | -73.20 | -110.10 | -159.63 | -130.68 | 1.26 | 18.43 | 15.24 | 17.85 | 15.35 | 15.88 | 18.49 | 19.80 | 21.05 | 23.21 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-812,000K ÷ $18,000K
= -45.11
The interest coverage ratio for Illumina Inc has shown a declining trend from March 31, 2020, to June 30, 2022, indicating a decrease in the company's ability to cover its interest expenses from its operating income. This could raise concerns about the company's financial health and ability to meet its debt obligations.
The interest coverage ratio plummeted significantly from June 30, 2022, to December 31, 2024, resulting in negative values. A negative interest coverage ratio typically indicates that the company's earnings are insufficient to cover its interest payments, which is a serious red flag for investors and creditors.
The drastic decline in the interest coverage ratio indicates that Illumina Inc may be experiencing financial distress or significant operational challenges during this period. Investors and stakeholders should closely monitor the company's financial performance and debt management strategies to ensure its long-term sustainability.
Peer comparison
Dec 31, 2024