Mercury Systems Inc (MRCY)

The interest coverage ratios for Mercury Systems Inc. over the specified periods demonstrate a significant decline, transitioning from high coverage levels to negative values, indicating challenges in meeting interest obligations. As of June 30, 2021, the ratio stood at 78.72, suggesting a robust ability to cover interest expenses with operating earnings. By June 30, 2022, this ratio had drastically decreased to 12.14, reflecting a notable erosion in interest coverage, yet still remaining positive and indicating some capacity to meet interest obligations.

However, a marked deterioration is evident in subsequent periods. By June 30, 2023, the ratio turned negative at -0.93, signaling that operating earnings were insufficient to cover interest expenses, potentially due to increased interest costs, declining earnings, or both. This negative trend persisted into June 30, 2024, with the ratio decreasing further to -4.41, indicating a worsening inability to service interest obligations from operating income.

For June 30, 2025, the ratio is projected at -3.04, continuing the pattern of insufficient earnings relative to interest expenses, which could foreshadow increased financial stress or the need for restructuring or refinancing to address the coverage shortfall. Overall, the data underscores a concerning trend of declining interest coverage over the analyzed period, transitioning from a historically strong position to significant challenges in fulfilling interest commitments through operating earnings.

Peer comparison

Jun 30, 2025