Myriad Genetics Inc (MYGN)
Interest coverage
| Sep 30, 2024 | 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 | 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 | -113,300 | -153,500 | -232,600 | -259,300 | -279,100 | -262,300 | -164,000 | -137,400 | -129,200 | -44,900 | -29,400 | -50,500 | -48,300 | -144,500 | -271,500 | -233,800 | -212,400 | -161,500 | -26,200 | -10,300 |
| Interest expense (ttm) | US$ in thousands | 3,000 | 3,200 | 2,900 | 2,900 | 2,900 | 2,700 | 2,800 | 3,200 | 2,800 | 3,100 | 4,500 | 6,600 | 9,000 | 11,000 | 11,300 | 10,800 | 10,800 | 10,900 | 11,800 | 12,700 |
| Interest coverage | -37.77 | -47.97 | -80.21 | -89.41 | -96.24 | -97.15 | -58.57 | -42.94 | -46.14 | -14.48 | -6.53 | -7.65 | -5.37 | -13.14 | -24.03 | -21.65 | -19.67 | -14.82 | -2.22 | -0.81 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-113,300K ÷ $3,000K
= -37.77
The interest coverage ratio for Myriad Genetics Inc has been consistently negative over the past several quarters, indicating a concerning trend in the company's ability to cover its interest expenses with its operating income. The ratio has ranged from -51.50 to -0.81 over the periods provided, suggesting persistent challenges in generating enough income to meet its interest obligations.
A negative interest coverage ratio implies that the company's operating income is insufficient to cover its interest expenses, raising questions about its financial health and sustainability. A ratio below 1.0 indicates that the company is not generating enough operating income to cover its interest payments, which could lead to potential financial distress or default on debt obligations.
It is crucial for stakeholders to closely monitor Myriad Genetics Inc's financial performance and assess its ability to improve its interest coverage ratio in order to ensure its long-term viability and financial stability. Improving operational efficiency, reducing debt levels, or increasing profitability may be necessary actions for the company to enhance its ability to cover its interest expenses in the future.
Peer comparison
Sep 30, 2024