IPG Photonics Corporation (IPGP)
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 | 14,477 | 231,566 | 294,966 | 368,320 | 231,510 |
| Interest expense | US$ in thousands | — | 41,735 | 12,620 | 1,839 | 59,435 |
| Interest coverage | — | 5.55 | 23.37 | 200.28 | 3.90 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,477K ÷ $—K
= —
Based on the interest coverage ratios of IPG Photonics Corporation over the past five years, we observe significant fluctuations in the company's ability to cover its interest payments from its operating income.
In December 2020, the interest coverage ratio stood at 3.90, indicating that IPG Photonics had just enough operating income to cover its interest expenses. However, in December 2021, the ratio skyrocketed to 200.28, reflecting a substantial improvement in the company's ability to service its debt obligations.
The following year, in December 2022, the interest coverage ratio decreased to 23.37, suggesting a slight reduction in the company's ability to cover its interest payments compared to the previous year. In December 2023, the ratio further declined to 5.55, indicating a potential strain on IPG Photonics' ability to service its debt.
Unfortunately, the data for December 31, 2024 is not available (denoted by a dash). Without this information, we are unable to assess the company's recent interest coverage performance.
Overall, the analysis of IPG Photonics Corporation's interest coverage ratios highlights the fluctuating nature of its ability to meet interest payment obligations, emphasizing the importance of closely monitoring profitability and debt levels to ensure financial stability and sustainability.
Peer comparison
Dec 31, 2024