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.
Peer comparison
Jun 30, 2025