Intuitive Surgical Inc (ISRG)

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	2,348,900	2,064,200	1,952,700	1,848,600	1,766,800	1,689,100	1,622,200	1,556,600	1,577,100	1,655,000	1,698,700	1,812,300	1,821,000	1,786,400	1,614,200	1,183,600	1,049,800	1,031,600	1,126,900	1,405,300
Interest expense (ttm)	US$ in thousands	0	28,700	28,700	28,700	57,400	50,900	54,800	64,100	41,100	21,000	17,100	7,800	2,100	0	0	0	0	0	0	0
Interest coverage		—	71.92	68.04	64.41	30.78	33.18	29.60	24.28	38.37	78.81	99.34	232.35	867.14	—	—	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,348,900K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). Intuitive Surgical Inc's interest coverage ratio had been unavailable until December 31, 2021, when it was reported at a robust 867.14, indicating a strong ability to cover its interest expenses with operating income.

Subsequently, the interest coverage ratio showed a declining trend, falling to 38.37 by December 31, 2022, 24.28 by March 31, 2023, and further dropping to 29.60 by June 30, 2023. This decline could suggest a reduction in profitability relative to its interest obligations during these periods.

However, from September 30, 2023, onwards, there was a notable improvement in the interest coverage ratio for Intuitive Surgical Inc. The ratio increased to 33.18 by September 30, 2023, and continued to rise to 64.41 by March 31, 2024, and further to 68.04 by June 30, 2024, demonstrating a recovery in the company's ability to cover interest payments with its earnings.

Overall, Intuitive Surgical Inc's interest coverage ratio has fluctuated over the periods provided, with a sharp decline followed by a gradual recovery. It is crucial for stakeholders to monitor this ratio to assess the company's ongoing ability to meet its interest obligations and manage its debt effectively.