Kulicke and Soffa Industries Inc (KLIC)

Interest coverage

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-73,749	-47,464	-51,382	65,554	72,343	114,938	234,814	343,996	477,196	560,983	557,767	511,562	414,674	283,141	174,409	104,514	66,014	53,317	46,813	34,473
Interest expense (ttm)	US$ in thousands	89	86	116	130	142	151	137	202	208	245	250	227	219	173	578	1,165	1,716	2,608	2,794	2,387
Interest coverage		-828.64	-551.91	-442.95	504.26	509.46	761.18	1,713.97	1,702.95	2,294.21	2,289.73	2,231.07	2,253.58	1,893.49	1,636.65	301.75	89.71	38.47	20.44	16.75	14.44

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-73,749K ÷ $89K
= -828.64

The interest coverage ratio for Kulicke and Soffa Industries Inc has shown significant fluctuations over the past several quarters. The negative figures in the most recent quarters, such as September 30, 2024, June 30, 2024, and March 31, 2024, indicate that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expense, raising concerns about its ability to meet its financial obligations related to interest payments.

The positive values observed in previous quarters, particularly in December 31, 2023, September 30, 2023, and June 30, 2023, signify that the company was able to generate ample earnings to cover its interest expenses. However, the high fluctuations in the interest coverage ratio suggest volatility in the company's profitability and financial health.

It is recommended that stakeholders closely monitor the company's financial performance and leverage levels to ensure that it can sustainably meet its interest obligations in the long term. Additional analysis of the company's operating income, interest expenses, and overall financial leverage would provide deeper insights into the factors driving these fluctuations in the interest coverage ratio.