Mercury Systems Inc (MRCY)
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 | -154,260 | -152,331 | -103,012 | -54,445 | -23,383 | 9,112 | 15,596 | 20,377 | 24,201 | 20,880 | 34,521 | 53,413 | 78,395 | 84,672 | 92,112 | 95,706 | 94,939 | 81,769 | 74,722 | 72,998 |
| Interest expense (ttm) | US$ in thousands | 35,015 | 33,167 | 30,559 | 28,475 | 25,159 | 20,301 | 15,254 | 9,758 | 5,806 | 3,953 | 2,838 | 1,817 | 1,222 | 1,570 | 1,079 | 1,006 | 1,006 | 2,239 | 4,654 | 6,850 |
| Interest coverage | -4.41 | -4.59 | -3.37 | -1.91 | -0.93 | 0.45 | 1.02 | 2.09 | 4.17 | 5.28 | 12.16 | 29.40 | 64.15 | 53.93 | 85.37 | 95.14 | 94.37 | 36.52 | 16.06 | 10.66 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-154,260K ÷ $35,015K
= -4.41
Interest coverage measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses. Looking at the data for Mercury Systems Inc, there is a notable fluctuation in the interest coverage ratio over the past few quarters.
The interest coverage ratio for Mercury Systems Inc has seen significant volatility, ranging from negative values indicating an inability to cover interest expenses to very high positive values indicating a strong ability to cover interest costs.
In recent quarters, the interest coverage ratio has shown a improving trend, transitioning from negative values to positive values, and even reaching high levels in some periods. This improvement suggests that the company's operating income has become more robust in covering its interest expenses.
It is important to note the negative interest coverage ratios in some quarters, which may raise concerns about the company's ability to meet its interest obligations with its current level of operating income. This could be a red flag for potential investors and creditors.
Overall, a closer analysis of the reasons behind the fluctuation in the interest coverage ratio would be necessary to understand the financial health and sustainability of Mercury Systems Inc in meeting its interest obligations in the long term.
Peer comparison
Jun 30, 2024