Intuitive Surgical Inc (ISRG)

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	2,348,900	1,766,800	1,577,100	1,821,000	1,049,800
Interest expense	US$ in thousands	—	—	29,700	356,000	427,200
Interest coverage		—	—	53.10	5.12	2.46

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,348,900K ÷ $—K
= —

The interest coverage ratio of Intuitive Surgical Inc has shown a positive trend over the past few years, indicating the company's ability to meet its interest obligations with its operating earnings.

As of December 31, 2020, the interest coverage ratio stood at 2.46, suggesting that the company's operating profit was able to cover its interest expenses approximately 2.46 times. This ratio improved significantly by December 31, 2021, reaching 5.12, indicating a stronger capability to service its interest payments.

By December 31, 2022, the interest coverage ratio surged to 53.10, showcasing a substantial increase in the company's ability to cover its interest expenses. This remarkable improvement reflects a healthier financial position and a lower risk of default on debt obligations.

However, the data shows that the interest coverage for December 31, 2023, and December 31, 2024, is not provided (represented by "—"), limiting our ability to assess the trend in the subsequent years.

Overall, the increasing trend in the interest coverage ratio of Intuitive Surgical Inc until 2022 demonstrates the company's improving profitability and financial strength, providing a favorable outlook for meeting its interest obligations in the near term.