Neurocrine Biosciences Inc (NBIX)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	78,500	53,476	41,399	-20,453
Interest expense (ttm)	US$ in thousands	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	32,000	31,533	31,205	30,896
Interest coverage		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	2.45	1.70	1.33	-0.66

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $336,700K ÷ $4,600K
= 73.20

Neurocrine Biosciences, Inc.'s interest coverage has shown a positive trend over the past year, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has been steadily increasing from 8.15 in Q1 2022 to 85.83 in Q4 2023. This signifies that the company's operating income is more than sufficient to cover its interest expenses, with a notable improvement in profitability and financial performance. The substantial increase in interest coverage reflects a strong financial position and enhanced ability to service debt obligations. Overall, Neurocrine Biosciences, Inc. demonstrates a healthy interest coverage ratio, which is a positive indicator for investors and creditors.