Myriad Genetics Inc (MYGN)
Interest coverage
| Dec 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -79,500 | -110,900 | -153,300 | -232,600 | -259,400 | -274,000 | -258,800 | -161,000 | -123,700 | -120,700 | -34,400 | -16,200 | -47,000 | -70,300 | -153,500 | -209,300 | -197,400 | -140,100 | -116,900 | -84,700 |
| Interest expense (ttm) | US$ in thousands | 2,800 | 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 | 10,800 | 11,900 | 11,200 | 10,800 | 10,800 | 10,900 |
| Interest coverage | -28.39 | -36.97 | -47.91 | -80.21 | -89.45 | -94.48 | -95.85 | -57.50 | -38.66 | -43.11 | -11.10 | -3.60 | -7.12 | -7.81 | -14.21 | -17.59 | -17.62 | -12.97 | -10.82 | -7.77 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-79,500K ÷ $2,800K
= -28.39
The interest coverage ratio of Myriad Genetics Inc has shown a deteriorating trend over the past few years. The company's ability to cover its interest expenses has weakened significantly, as indicated by negative values for all reported periods. Negative interest coverage ratios suggest that Myriad Genetics Inc is not generating sufficient operating income to cover its interest payments.
The ratio hit a low point in March 31, 2024, with an interest coverage ratio of -80.21, indicating a severe strain on the company's financial position. While there have been fluctuations in the ratio over the periods, it is notable that the company has consistently struggled to generate enough earnings to meet its interest obligations.
Such persistent negative interest coverage ratios raise concerns about the company's financial health and its ability to meet its debt obligations. Investors and creditors would likely closely monitor this metric as it indicates the risk associated with investing in or lending to Myriad Genetics Inc. The company may need to address its financial structure and profitability to improve its interest coverage ratio and enhance its overall financial stability.
Peer comparison
Dec 31, 2024