Inspire Medical Systems Inc (INSP)
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 | -19,906 | -42,591 | -39,842 | -54,971 | -31,084 |
| Interest expense | US$ in thousands | 0 | 1,677 | 2,128 | 2,117 | 2,119 |
| Interest coverage | — | -25.40 | -18.72 | -25.97 | -14.67 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-19,906K ÷ $0K
= —
Inspire Medical Systems Inc's interest coverage ratio, which reflects the company's ability to meet its interest obligations, has shown an improving trend over the past five years. The interest coverage ratio was negative in the years 2019, 2020, and 2021, indicating that the company did not generate sufficient earnings to cover its interest expenses during those periods.
However, the ratio improved significantly in 2022, jumping to -25.40 from -14.67 in 2021, suggesting a better ability to cover interest costs with operating income. The lack of a specific figure for 2023 makes it difficult to gauge the current status accurately, but given the increased trend from 2021 to 2022, it may be assumed that there was further improvement or at least a maintenance of the improved coverage position in 2023.
Overall, although the company experienced challenges meeting its interest obligations in the past, the recent improvement indicates a positive trajectory in terms of interest coverage, which suggests a potential strengthening of its financial position.
Peer comparison
Dec 31, 2023