Innovex International, Inc (INVX)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 153,367 | 127,967 | 89,297 | 67,216 | -17,271 | -9,054 | 13,567 | 8,874 | 27,364 | 18,464 | 7,061 | -65,335 | -86,814 | -98,119 | -124,264 | -64,426 | -59,594 | -51,845 | -61,428 | -42,474 |
| Interest expense (ttm) | US$ in thousands | 2,355 | 2,411 | 2,430 | 2,847 | 3,634 | 3,046 | 2,407 | 3,297 | 1,912 | 1,992 | 1,966 | 479 | 442 | 402 | 787 | 675 | 719 | 869 | 621 | 704 |
| Interest coverage | 65.12 | 53.08 | 36.75 | 23.61 | -4.75 | -2.97 | 5.64 | 2.69 | 14.31 | 9.27 | 3.59 | -136.40 | -196.41 | -244.08 | -157.90 | -95.45 | -82.88 | -59.66 | -98.92 | -60.33 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $153,367K ÷ $2,355K
= 65.12
The analysis of Innovex International, Inc.'s interest coverage ratio over the specified period reveals significant fluctuations indicative of underlying financial performance and stability trends.
From September 30, 2020, through December 31, 2021, the company exhibited negative interest coverage ratios, with values ranging from approximately -60.33 to -157.90. These negative figures suggest the firm was incurring substantial losses relative to its interest obligations, likely reflecting operating challenges, high leverage, or both, resulting in insufficient earnings to cover interest expenses.
In early 2022, there was a notable improvement: by December 31, 2022, the ratio transitioned to a positive figure of 3.59, implying that the company's earnings before interest and taxes (EBIT) were now adequate to cover interest expenses, albeit marginally. This positive trend continued into March 2023 and subsequent quarters, with the interest coverage ratio steadily increasing to 9.27 in March 2023 and reaching 14.31 by June 2023, indicating a strengthening in earnings capacity relative to interest obligations.
However, the ratio experienced a decline in September 2023, falling to 2.69, before rising again to 5.64 by the end of 2023, and further improving with projections of 53.08 by March 2025. These forward-looking figures suggest expectations of continued earnings growth, enhancing the company's ability to meet interest commitments comfortably in the near future.
Overall, the historical data shows a transition from periods of significant financial stress with negative interest coverage ratios to a phase of consistent positive ratios, reflecting improved profitability and potentially reduced leverage. The projected figures indicate optimism about sustained financial stability and improved capacity to service debt obligations moving forward.
Peer comparison
Jun 30, 2025