Omnicell Inc (OMCL)
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 | — | -34,868 | -2,323 | 89,507 | 35,526 |
| Interest expense | US$ in thousands | 25,256 | 14,760 | 130 | 22,389 | 2,097 |
| Interest coverage | 0.00 | -2.36 | -17.87 | 4.00 | 16.94 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $25,256K
= 0.00
The interest coverage ratio provides insight into Omnicell Inc's ability to cover its interest expenses with its operating income.
As of December 31, 2020, the interest coverage ratio stood at 16.94, indicating that the company's operating income was nearly 17 times its interest expenses, suggesting a healthy level of financial stability.
However, by December 31, 2021, the interest coverage ratio decreased to 4.00, signaling a decline in the company's ability to cover its interest obligations with operating income. This could potentially raise concerns about the company's ability to service its debt effectively.
The ratio took a sharp negative turn by December 31, 2022, dropping to -17.87. This negative interest coverage ratio indicates that the company's operating income was insufficient to cover its interest expenses, raising significant red flags about its financial health and ability to meet debt obligations.
The situation worsened by the end of 2023, with the interest coverage ratio falling further to -2.36, continuing to show a substantial inability to cover interest payments with operating income.
Finally, as of December 31, 2024, the interest coverage ratio hit 0.00, suggesting that Omnicell Inc had no operating income to cover its interest expenses. This scenario implies a critical financial strain, as the company was unable to meet its interest obligations with earnings.
In summary, the trend in Omnicell Inc's interest coverage ratio from 2020 to 2024 paints a concerning picture of deteriorating financial health and increasing financial risk, highlighting potential challenges in servicing debt and meeting interest expenses.
Peer comparison
Dec 31, 2024