Masimo Corporation (MASI)
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 | 138,400 | 174,800 | 209,700 | 204,200 | 225,300 | 228,858 | 234,729 | 268,964 | 274,767 | 264,625 | 258,193 | 256,566 | 264,003 | 261,741 | 255,039 | 246,944 | 234,493 | 225,609 | 220,848 | 218,312 |
| Interest expense (ttm) | US$ in thousands | 50,300 | 47,900 | 44,800 | 37,500 | 25,700 | 14,400 | 4,700 | 300 | 284 | 234 | 318 | 301 | 301 | 336 | 334 | 331 | 327 | 254 | 179 | 159 |
| Interest coverage | 2.75 | 3.65 | 4.68 | 5.45 | 8.77 | 15.89 | 49.94 | 896.55 | 967.49 | 1,130.88 | 811.93 | 852.38 | 877.09 | 778.99 | 763.59 | 746.05 | 717.10 | 888.22 | 1,233.79 | 1,373.03 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $138,400K ÷ $50,300K
= 2.75
Masimo Corporation's interest coverage ratio has fluctuated over the past few quarters. The ratio measures the company's ability to pay its interest expenses from its operating income.
In the most recent quarter ending December 31, 2023, the interest coverage ratio was 2.75, indicating that the company generated operating income 2.75 times greater than its interest expenses. This suggests that Masimo Corporation may have a lower capacity to cover its interest obligations based on its current operating performance.
Looking back over the last few quarters, the interest coverage ratio has been relatively healthy, with a significant peak in the first quarter of 2022 at 896.55. This exceptionally high ratio suggests that during that period, Masimo Corporation had a substantial cushion to comfortably cover its interest expenses from its operating earnings.
Overall, it is important for investors and stakeholders to monitor Masimo Corporation's interest coverage ratio closely to assess the company's financial health and ability to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2023