Lumentum Holdings Inc (LITE)
Interest coverage
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -383,200 | -285,800 | -227,400 | -153,800 | -66,900 | 32,700 | 121,700 | 226,100 | 315,300 | 298,200 | 518,500 | 546,700 | 529,800 | 513,800 | 308,700 | 270,300 | 235,500 | 195,300 | 59,900 | 10,100 |
| Interest expense (ttm) | US$ in thousands | 14,600 | 37,800 | 37,500 | 36,700 | 35,500 | 52,600 | 63,600 | 71,800 | 80,200 | 71,700 | 68,400 | 67,600 | 66,700 | 64,600 | 63,800 | 65,800 | 61,200 | 56,700 | 52,400 | 42,600 |
| Interest coverage | -26.25 | -7.56 | -6.06 | -4.19 | -1.88 | 0.62 | 1.91 | 3.15 | 3.93 | 4.16 | 7.58 | 8.09 | 7.94 | 7.95 | 4.84 | 4.11 | 3.85 | 3.44 | 1.14 | 0.24 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-383,200K ÷ $14,600K
= -26.25
The interest coverage ratio for Lumentum Holdings Inc has shown a fluctuating trend over the past few quarters. The ratio has been consistently below 1, indicating that the company's operating income is not sufficient to cover its interest expenses. This suggests a potential risk as the company may face challenges in meeting its debt obligations using its current level of operating income.
Although the ratio has shown some improvement in recent quarters, it is still below the threshold of 1, which is generally considered a red flag for investors and creditors. The negative values indicate that the company's operating income is insufficient to cover its interest expenses, and it may be relying on other sources of funds to meet its interest payments.
Overall, the interest coverage ratio for Lumentum Holdings Inc indicates a concerning financial position in terms of its ability to service its debt obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and ability to meet its debt commitments.
Peer comparison
Jun 30, 2024