Pacira BioSciences, Inc. (PCRX)

Interest coverage

		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	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-57,716	-53,110	102,974	95,263	61,422	20,429	21,130	11,043	49,658	104,551	114,337	133,831	133,411	114,187	104,005	72,479	62,455	51,614	33,565	41,100
Interest expense (ttm)	US$ in thousands	13,439	13,702	13,317	14,061	21,015	27,959	33,448	37,542	37,020	36,402	34,116	32,521	29,774	26,413	26,878	25,970	25,233	24,168	22,976	22,974
Interest coverage		-4.29	-3.88	7.73	6.77	2.92	0.73	0.63	0.29	1.34	2.87	3.35	4.12	4.48	4.32	3.87	2.79	2.48	2.14	1.46	1.79

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-57,716K ÷ $13,439K
= -4.29

The interest coverage ratio of Pacira BioSciences, Inc. has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the company's interest coverage ratio ranged from 1.79 to 2.79, indicating that the company could cover its interest expenses comfortably. However, from June 30, 2022, the interest coverage ratio started to decline, reaching its lowest point of 0.29 on March 31, 2023, and 0.63 on June 30, 2023, suggesting potential challenges in meeting interest obligations.

Subsequently, the interest coverage ratio improved significantly, surpassing 6.00 on March 31, 2024, and continued to increase to 7.73 on June 30, 2024. These higher ratios indicate that the company's ability to cover interest payments improved substantially. However, a significant decline was observed in the following periods, with negative interest coverage ratios recorded on September 30, 2024, and December 31, 2024, which raises concerns about the company's financial stability and ability to meet interest expenses from operating income alone.

Overall, Pacira BioSciences, Inc.'s interest coverage ratio exhibited fluctuations, indicating a mix of strengths and weaknesses in managing its debt obligations. Investors and stakeholders should closely monitor future financial performance to assess the company's ability to generate sufficient operating income to cover its interest expenses effectively.