Envista Holdings Corp (NVST)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,038,100 | -1,285,300 | -1,255,000 | -15,700 | 8,500 | 299,800 | 321,400 | 303,500 | 327,400 | 328,200 | 350,000 | 376,600 | 385,600 | 384,000 | 363,200 | 160,700 | 30,500 | 10,700 |
| Interest expense (ttm) | US$ in thousands | 46,400 | 50,400 | 53,900 | 59,600 | 63,400 | 64,000 | 60,200 | 49,200 | 38,400 | 34,400 | 34,800 | 42,000 | 54,100 | 64,900 | 76,300 | 77,200 | 62,500 | 44,500 |
| Interest coverage | -22.37 | -25.50 | -23.28 | -0.26 | 0.13 | 4.68 | 5.34 | 6.17 | 8.53 | 9.54 | 10.06 | 8.97 | 7.13 | 5.92 | 4.76 | 2.08 | 0.49 | 0.24 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,038,100K ÷ $46,400K
= -22.37
The interest coverage ratio of Envista Holdings Corp, which measures the company's ability to meet its interest obligations, has shown significant fluctuations over the specified period. The ratio was very low at the beginning of the period, indicating a potential risk in meeting interest payments. However, there was a notable improvement in the ratio from March 31, 2021, onwards, reaching a peak of 10.06 on June 30, 2022. This improvement suggests that the company's earnings were more than sufficient to cover its interest expenses during this period.
Subsequently, the interest coverage ratio began to decline, dropping to 4.68 on September 30, 2023, and then notably decreasing to negative values from December 31, 2023, onwards. Negative values for the interest coverage ratio indicate that the company's earnings were insufficient to cover its interest expenses, posing a potential financial risk.
Overall, the trend in Envista Holdings Corp's interest coverage ratio shows fluctuations, with periods of improvement followed by a significant decline, ultimately reaching negative values in the latter part of the period. This indicates a deteriorating ability to cover interest expenses and may warrant further investigation into the company's financial health and sustainability.
Peer comparison
Dec 31, 2024