Neurocrine Biosciences Inc (NBIX)
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 | 506,800 | 564,100 | 497,000 | 474,500 | 336,700 | 256,400 | 238,800 | 94,800 | 221,000 | 94,800 | 32,800 | 117,600 | 127,200 | 183,900 | 98,200 | 126,000 | 139,500 | 136,800 | 251,800 | 220,300 |
| Interest expense (ttm) | US$ in thousands | 126,600 | 127,700 | 128,800 | 4,600 | 4,600 | 4,600 | 4,700 | 5,600 | 7,100 | 12,600 | 18,000 | 22,000 | 25,800 | 27,000 | 28,900 | 31,000 | 32,800 | 33,200 | 32,700 | 32,300 |
| Interest coverage | 4.00 | 4.42 | 3.86 | 103.15 | 73.20 | 55.74 | 50.81 | 16.93 | 31.13 | 7.52 | 1.82 | 5.35 | 4.93 | 6.81 | 3.40 | 4.06 | 4.25 | 4.12 | 7.70 | 6.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $506,800K ÷ $126,600K
= 4.00
The interest coverage ratio is a key financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
Analyzing the interest coverage ratio of Neurocrine Biosciences Inc based on the provided data shows fluctuation over time. The interest coverage ratio ranged between 1.82 and 103.15 during the period from March 31, 2022, to December 31, 2024. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income, reflecting a lower financial risk.
Neurocrine Biosciences Inc's interest coverage ratio exhibited considerable variability, reaching a peak of 103.15 on March 31, 2024, indicating a robust ability to service its interest payments at that time. However, the ratio experienced significant declines in subsequent periods, with values as low as 1.82 on June 30, 2022, reflecting potential challenges in meeting interest obligations with earnings.
Overall, the analysis of Neurocrine Biosciences Inc's interest coverage ratio suggests fluctuations in the company's ability to cover interest expenses over the specified period. Investors and stakeholders should monitor this ratio closely to evaluate the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2024