Neurocrine Biosciences Inc (NBIX)
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 | 570,500 | 336,700 | 221,000 | 127,200 | 139,500 |
| Interest expense | US$ in thousands | 126,600 | 4,600 | 7,100 | 25,800 | 32,800 |
| Interest coverage | 4.51 | 73.20 | 31.13 | 4.93 | 4.25 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $570,500K ÷ $126,600K
= 4.51
Neurocrine Biosciences Inc's interest coverage ratio has shown some fluctuations over the years. In December 31, 2020, the interest coverage ratio was 4.25, indicating that the company generated 4.25 times the amount needed to cover its interest expenses.
By the end of December 31, 2021, the interest coverage ratio improved to 4.93, demonstrating a slightly better ability to cover interest payments. However, there was a significant spike in the ratio by December 31, 2022, reaching 31.13. This substantial increase suggests a significant improvement in the company's ability to cover interest expenses with its operating income.
The trend continued to be positive as of December 31, 2023, with the interest coverage ratio soaring to 73.20, indicating an exceptionally strong capacity to service its interest obligations. However, there was a decline in the ratio by December 31, 2024, dropping to 4.51.
Overall, the data highlights Neurocrine Biosciences Inc's ability to cover its interest payments, with some fluctuations observed over the years. The significant improvements in the interest coverage ratio in 2022 and 2023 suggest an enhanced financial position and profitability in those years.
Peer comparison
Dec 31, 2024