OSI Systems Inc (OSIS)

Interest coverage

Jun 30, 2025 Mar 31, 2025 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 97,625 160,443 204,001 197,730 189,061 183,394 166,368 139,538 136,498 118,904 114,462 118,057 123,218 117,515 119,801 111,913 103,926 98,491 89,935 101,656
Interest expense (ttm) US$ in thousands 31,430 32,364 31,543 29,458 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
Interest coverage 3.11 4.96 6.47 6.71 6.79 7.22 7.02 6.24 6.81 7.09 8.58 11.38 13.75 11.01 9.55 7.69 6.21 5.77 5.11 5.58

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $97,625K ÷ $31,430K
= 3.11

The interest coverage ratios of OSI Systems Inc, as indicated in the provided data, demonstrate a generally stable capacity to meet interest obligations over the analyzed period from September 2020 through June 2025. Starting at a ratio of 5.58 in September 2020, the ratio experienced a gradual upward trend, reaching a peak of 13.75 in June 2022. This signifies an improved ability to cover interest expenses, suggesting increased earnings relative to interest obligations during that period.

Post-2022, the ratios show signs of fluctuation with a gradual decline; for instance, the ratio drops to 8.58 in December 2022 and continues downward to 4.96 by March 2025. Despite this trend, the ratio remains above the generally accepted threshold of 3.0, indicating that the company continues to generate sufficient earnings before interest and taxes (EBIT) to cover interest expenses with a comfortable margin.

Overall, the interest coverage ratio reflects a period of strengthening financial stability and liquidity up to mid-2022, followed by a moderate weakening trend. Nonetheless, the ratios consistently remain above critical levels that would signal potential difficulties in meeting interest obligations, pointing toward a generally sound interest coverage profile during the period analyzed.