OSI Systems Inc (OSIS)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	189,061	183,394	166,368	139,538	135,279	117,685	111,774	115,369	121,749	116,046	120,086	123,358	115,371	104,973	96,132	96,693	104,887	109,121	117,616	116,404
Interest expense (ttm)	US$ in thousands	27,847	25,391	23,711	22,357	20,041	16,767	13,341	10,378	8,962	10,676	12,542	14,558	16,731	17,068	17,607	18,218	18,765	19,349	20,246	21,022
Interest coverage		6.79	7.22	7.02	6.24	6.75	7.02	8.38	11.12	13.59	10.87	9.57	8.47	6.90	6.15	5.46	5.31	5.59	5.64	5.81	5.54

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $189,061K ÷ $27,847K
= 6.79

From the data provided, we can see that OSI Systems Inc's interest coverage ratio has fluctuated over the past few quarters. The interest coverage ratio is an important financial metric that indicates a company's ability to meet its interest obligations with its operating income.

OSI Systems Inc's interest coverage ratio ranged from a low of 5.31 in March 2020 to a high of 13.59 in September 2022. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments from its operating income.

Overall, the company's interest coverage ratio appears to have generally been above 5 in recent quarters, indicating that OSI Systems Inc has had a healthy ability to cover its interest expenses with its operating income. It is important for investors and creditors to monitor this ratio over time to assess the company's financial health and ability to service its debt obligations.