Integer Holdings Corp (ITGR)
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 | 160,664 | 115,617 | 136,479 | 124,427 | 162,856 |
| Interest expense | US$ in thousands | 53,370 | 38,632 | 31,628 | 38,220 | 52,545 |
| Interest coverage | 3.01 | 2.99 | 4.32 | 3.26 | 3.10 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $160,664K ÷ $53,370K
= 3.01
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt using its operating income. A higher ratio indicates a stronger ability to cover interest obligations.
Integer Holdings Corp's interest coverage has fluctuated over the past five years. In 2023, the interest coverage ratio was 3.21, down from 3.53 in 2022 and 4.52 in 2021. While the ratio has decreased, it still indicates that the company's operating income is able to cover its interest expenses approximately three times over.
The trend over the five-year period shows some variability in the company's ability to cover its interest expenses, with 2021 showing the highest coverage ratio. Overall, the company appears to have maintained a reasonable level of interest coverage over the years, which suggests a moderate level of financial risk in terms of meeting interest payments.
Peer comparison
Dec 31, 2023