Penumbra Inc (PEN)
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 | 73,551 | 43,355 | 36,164 | 18,136 | 6,082 | -38,808 | -35,461 | -25,010 | -7,501 | 30,811 | 1,872 | -26,089 | -38,942 | -26,618 | 6,516 | 36,966 | 47,508 | 43,598 | 9,773 | 6,255 |
| Interest expense (ttm) | US$ in thousands | 5,645 | 2,872 | 2,109 | 1,631 | 1,439 | 1,458 | 1,474 | 1,487 | 1,496 | 1,503 | 1,507 | 1,493 | 1,517 | 1,135 | 1,514 | 1,154 | 1,492 | 1,492 | 1,504 | 2,224 |
| Interest coverage | 13.03 | 15.10 | 17.15 | 11.12 | 4.23 | -26.62 | -24.06 | -16.82 | -5.01 | 20.50 | 1.24 | -17.47 | -25.67 | -23.45 | 4.30 | 32.03 | 31.84 | 29.22 | 6.50 | 2.81 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $73,551K ÷ $5,645K
= 13.03
The interest coverage ratio for Penumbra Inc for the quarters Q3 2022 and Q1 2022 were negative, indicating that the company did not generate enough operating income to cover its interest expenses during those periods. As a negative interest coverage ratio signifies financial distress and an inability to meet interest obligations, investors and creditors may perceive this as a red flag regarding the company's financial health and ability to service its debt. It is important for Penumbra Inc to closely monitor and improve its interest coverage ratio to ensure sustainable financial stability and continued access to financing.
Peer comparison
Dec 31, 2023