Pacira Pharmaceuticals Inc (PCRX)

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	82,007	37,872	29,732	18,853	53,278	64,530	84,169	86,000	88,200	103,730	85,417	50,891	45,730	28,452	15,354	24,217	12,934	24,534	29,321	30,309
Interest expense (ttm)	US$ in thousands	20,306	27,959	34,351	39,319	39,976	39,358	36,835	35,025	31,750	28,389	28,188	26,621	25,672	24,607	23,415	23,837	23,629	23,386	23,088	22,607
Interest coverage		4.04	1.35	0.87	0.48	1.33	1.64	2.29	2.46	2.78	3.65	3.03	1.91	1.78	1.16	0.66	1.02	0.55	1.05	1.27	1.34

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $82,007K ÷ $20,306K
= 4.04

Pacira BioSciences Inc has exhibited fluctuating interest coverage ratios over the past eight quarters. In Q4 2023, the interest coverage ratio improved to 10.09, indicating a strong ability to cover its interest expenses with operating income. This represents a significant increase from the previous quarter's ratio of 3.88 in Q3 2023.

Looking back further, there has been a noticeable improvement in interest coverage ratio compared to the same quarter a year ago. In Q4 2022, the ratio was 2.00, showing a substantial enhancement in Q4 2023.

The trend over the past year suggests a positive trajectory in Pacira BioSciences Inc's ability to meet its interest obligations from operating profits. However, the quarterly fluctuations indicate the need for continued monitoring to ensure sustained financial health and stability.