Lantheus Holdings Inc (LNTH)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 430,962 | 113,856 | 33,488 | -31,619 | 33,904 | 168,087 | 65,177 | -24,936 | -67,286 | -27,839 | -14,225 | 7,585 | -2,000 | 2,554 | 14,921 | 32,363 | 42,244 | 59,626 | 69,194 | 72,803 |
| Interest expense (ttm) | US$ in thousands | 20,019 | 17,559 | 14,131 | 10,667 | 7,185 | 6,132 | 6,075 | 6,543 | 7,752 | 9,035 | 10,274 | 10,251 | 9,479 | 8,794 | 8,342 | 10,971 | 13,617 | 16,102 | 18,192 | 17,947 |
| Interest coverage | 21.53 | 6.48 | 2.37 | -2.96 | 4.72 | 27.41 | 10.73 | -3.81 | -8.68 | -3.08 | -1.38 | 0.74 | -0.21 | 0.29 | 1.79 | 2.95 | 3.10 | 3.70 | 3.80 | 4.06 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $430,962K ÷ $20,019K
= 21.53
Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio is generally seen as favorable, indicating a company's stronger ability to meet its interest payments.
In the case of Lantheus Holdings Inc, the interest coverage ratio has varied significantly over the past eight quarters. In Q4 2023, the interest coverage ratio reached an exceptionally high level of 957.07, indicating a robust ability to cover interest expenses. However, this was in stark contrast to Q1 2023, where the interest coverage ratio was negative at -7.07, suggesting the company's operating income was not sufficient to cover its interest expenses during that period.
Overall, there has been considerable fluctuation in Lantheus Holdings Inc's interest coverage ratio over the analyzed quarters, with both positive and negative values recorded. This highlights the importance of closely monitoring the company's financial performance and its ability to generate enough operating income to cover its interest obligations in a sustainable manner.
Peer comparison
Dec 31, 2023