Moderna Inc (MRNA)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -3,583,000 | -3,904,000 | 9,420,000 | 13,296,000 | -763,144 |
| Interest expense | US$ in thousands | 24,000 | 38,000 | 29,000 | 18,000 | 9,886 |
| Interest coverage | -149.29 | -102.74 | 324.83 | 738.67 | -77.19 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-3,583,000K ÷ $24,000K
= -149.29
The interest coverage ratio of Moderna Inc has shown significant fluctuations over the past five years. In December 31, 2020, the company's interest coverage ratio was negative at -77.19, indicating that Moderna's operating income was not sufficient to cover its interest expenses at that time.
However, by December 31, 2021, the interest coverage ratio improved dramatically to 738.67, demonstrating a strong ability to cover interest payments with operating income. This significant increase suggests that Moderna's profitability had increased substantially in that year.
In the following years, the interest coverage ratio remained positive, though it decreased from the peak in 2021. By December 31, 2024, the interest coverage ratio declined to -149.29, indicating a potential concern as operating income may not be enough to cover interest expenses.
Overall, Moderna Inc's interest coverage ratio has displayed volatility, with fluctuations indicating changes in the company's financial performance and ability to meet its interest obligations. Monitoring this ratio closely is essential to assess the company's financial health and risk of potential financial distress.
Peer comparison
Dec 31, 2024