Owens & Minor Inc (OMI)
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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -128,756 | 195,699 | 236,168 | 232,586 | 217,708 | 104,225 | 109,380 | 157,201 | 235,439 | 349,644 | 348,856 | 340,073 | 388,743 | 411,365 | 424,129 | 345,063 | 211,019 | 128,771 | 71,515 | 61,058 |
| Interest expense (ttm) | US$ in thousands | 143,804 | 144,970 | 146,543 | 151,372 | 157,915 | 162,217 | 163,959 | 159,070 | 128,891 | 99,033 | 70,736 | 46,437 | 48,090 | 54,260 | 63,663 | 73,728 | 83,398 | 88,479 | 93,442 | 99,519 |
| Interest coverage | -0.90 | 1.35 | 1.61 | 1.54 | 1.38 | 0.64 | 0.67 | 0.99 | 1.83 | 3.53 | 4.93 | 7.32 | 8.08 | 7.58 | 6.66 | 4.68 | 2.53 | 1.46 | 0.77 | 0.61 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-128,756K ÷ $143,804K
= -0.90
Owens & Minor Inc's interest coverage ratio has shown fluctuations over the past few years. The ratio was below 1 in the first half of 2020, indicating that the company struggled to cover its interest expenses with its operating income during that period. However, there has been a positive trend since then, with the interest coverage ratio steadily increasing to peak at 8.08 by the end of December 2021.
This improvement in the interest coverage ratio suggests that Owens & Minor Inc has been generating more operating income relative to its interest expenses, which is a positive sign of the company's financial health. However, the ratio started declining in the following quarters of 2022 and 2023, dropping below 1 at the end of December 2024, which may raise concerns about the company's ability to meet its interest obligations.
Overall, the analysis indicates that Owens & Minor Inc's ability to cover its interest expenses has varied significantly over the years, with periods of both strength and weakness. Investors and creditors should closely monitor the company's interest coverage ratio to assess its financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2024