Owens & Minor Inc (OMI)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 103,189 | -8,933 | 23,388 | 87,923 | 139,779 | 255,264 | 257,876 | 279,430 | 324,844 | 349,810 | 362,194 | 237,298 | 135,103 | 30,039 | -21,057 | 22,409 | 29,606 | -223,500 | -225,507 | -411,984 |
| Interest expense (ttm) | US$ in thousands | 157,915 | 162,217 | 163,959 | 159,070 | 128,891 | 99,033 | 70,736 | 46,437 | 48,090 | 54,259 | 63,662 | 73,727 | 83,397 | 88,478 | 91,553 | 95,996 | 98,112 | 93,888 | 93,664 | 86,187 |
| Interest coverage | 0.65 | -0.06 | 0.14 | 0.55 | 1.08 | 2.58 | 3.65 | 6.02 | 6.75 | 6.45 | 5.69 | 3.22 | 1.62 | 0.34 | -0.23 | 0.23 | 0.30 | -2.38 | -2.41 | -4.78 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $103,189K ÷ $157,915K
= 0.65
Owens & Minor, Inc.'s interest coverage ratio has shown a decline in the most recent quarters, indicating potential challenges in meeting its interest obligations. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
In Q4 2023, the interest coverage ratio was 1.29, indicating that the company generated 1.29 times the earnings needed to cover its interest expenses. This is a decrease from the previous quarter, Q3 2023, where the ratio was 0.44, suggesting a significant deterioration in the company's ability to cover its interest payments.
The trend of declining interest coverage ratios since Q3 2022 raises concerns about Owens & Minor, Inc.'s financial health and ability to service its debt obligations. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which could lead to financial distress if sustained over the long term.
Overall, Owens & Minor, Inc.'s interest coverage ratio analysis shows a concerning trend of decreasing ability to cover interest expenses, highlighting the importance of closely monitoring the company's financial performance and debt management practices.
Peer comparison
Dec 31, 2023