Impinj Inc (PI)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -38,840 | -19,194 | -48,557 | -46,421 | -20,995 |
| Interest expense | US$ in thousands | 4,848 | 4,923 | 2,550 | 5,413 | 1,794 |
| Interest coverage | -8.01 | -3.90 | -19.04 | -8.58 | -11.70 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-38,840K ÷ $4,848K
= -8.01
Impinj Inc's interest coverage ratio has displayed significant fluctuations over the past five years. The ratio has been consistently below 0, indicating that the company has consistently failed to generate sufficient operating income to cover its interest expenses. This suggests a high level of financial risk for the company as it struggles to meet its interest obligations. The most concerning years were 2021 and 2019, with interest coverage ratios of -19.04 and -11.70 respectively, indicating particularly severe financial strain. It is imperative for Impinj Inc to improve its operating performance and profitability in order to enhance its ability to service its debt obligations and potentially attract more favorable financing terms in the future.
Peer comparison
Dec 31, 2023