Owens & Minor Inc (OMI)
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 | -5,786 | 112,909 | 139,135 | 324,844 | 184,074 |
| Interest expense | US$ in thousands | 143,804 | 157,915 | 128,891 | 48,090 | 83,398 |
| Interest coverage | -0.04 | 0.71 | 1.08 | 6.75 | 2.21 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-5,786K ÷ $143,804K
= -0.04
The interest coverage ratio for Owens & Minor Inc has been fluctuating over the years. It was 2.21 as of December 31, 2020, indicating that the company could cover its interest expenses approximately 2.21 times with its earnings before interest and taxes (EBIT). This ratio improved significantly to 6.75 by December 31, 2021, suggesting a stronger ability to meet interest obligations from operating income.
However, there was a sharp decline in the interest coverage ratio to 1.08 by December 31, 2022, possibly raising concerns about the company's ability to cover its interest payments. The ratio further deteriorated to 0.71 by December 31, 2023, falling below 1, which may indicate that the company's EBIT is insufficient to cover its interest expenses.
Moreover, as of December 31, 2024, the interest coverage ratio turned negative at -0.04, indicating that the company's EBIT was not enough to cover its interest payments, which is a significant financial red flag.
Overall, the trend in Owens & Minor Inc's interest coverage ratio shows variability and a recent negative turn, highlighting potential challenges in meeting interest obligations with its current level of earnings.
Peer comparison
Dec 31, 2024