Myriad Genetics Inc (MYGN)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	12,200
Interest expense (ttm)	US$ in thousands	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	12,000
Interest coverage		-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	1.02

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-153,500K ÷ $3,200K
= -47.97

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses, while a lower ratio suggests a potential financial risk.

Based on the data provided for Myriad Genetics Inc, the interest coverage ratio has been fluctuating significantly over the past few quarters. The company's interest coverage ratio has been negative for most of the periods, indicating that the company's earnings before interest and taxes (EBIT) are insufficient to cover its interest expenses.

The negative interest coverage ratios, such as -47.97, -80.21, and -89.41, highlight a concerning trend where the company is not generating enough operating income to cover its interest payments, raising concerns about its financial health and solvency.

There are a few periods where the interest coverage ratio has improved slightly, with values such as -7.65, -5.37, and 1.02, indicating a temporary improvement in the company's ability to cover its interest obligations.

Overall, the consistent negative interest coverage ratios for Myriad Genetics Inc suggest a significant financial challenge in meeting its interest obligations, which can lead to increased financial risk and potential distress for the company if not addressed promptly. Investors and stakeholders should closely monitor the company's financial performance and debt management strategies going forward.