Envista Holdings Corp (NVST)
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 | -1,038,200 | 8,500 | 327,400 | 385,600 | 33,300 |
| Interest expense | US$ in thousands | 46,400 | 63,400 | 38,400 | 54,100 | 62,500 |
| Interest coverage | -22.38 | 0.13 | 8.53 | 7.13 | 0.53 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-1,038,200K ÷ $46,400K
= -22.38
Based on the interest coverage ratios provided for Envista Holdings Corp, there are fluctuations in the company's ability to cover its interest expenses over the years.
- As of December 31, 2020, the interest coverage ratio was 0.53, indicating that Envista had limited earnings available to cover its interest payments.
- By December 31, 2021, the interest coverage ratio improved significantly to 7.13, reflecting a better ability to cover interest costs with earnings.
- The ratio further improved to 8.53 by December 31, 2022, suggesting continued strengthening in Envista's ability to meet interest obligations.
- However, there was a notable decline in the interest coverage ratio to 0.13 by December 31, 2023, indicating a sharp decrease in earnings relative to the interest expenses.
- The most recent ratio as of December 31, 2024, shows a negative ratio of -22.38, which is concerning as it suggests that Envista's earnings are insufficient to cover its interest payments, raising potential solvency issues.
Overall, while there has been some improvement in Envista's ability to cover its interest expenses in recent years, the sharp fluctuations in the interest coverage ratios raise concerns about the company's financial stability and ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2024