Impinj Inc (PI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 45,868 | -38,840 | -19,194 | -48,557 | -46,421 |
| Interest expense | US$ in thousands | 4,873 | 4,848 | 4,923 | 2,550 | 5,413 |
| Interest coverage | 9.41 | -8.01 | -3.90 | -19.04 | -8.58 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $45,868K ÷ $4,873K
= 9.41
Based on the provided data, Impinj Inc's interest coverage ratio has exhibited significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was negative at -8.58, indicating that the company's operating income was not sufficient to cover its interest expenses. This raises concerns about the company's ability to meet its debt obligations.
The situation worsened by December 31, 2021, with the interest coverage ratio plummeting to -19.04. Such a low ratio suggests a further deterioration in the company's financial health and increased financial risk.
However, by December 31, 2022, there was a slight improvement in the interest coverage ratio to -3.90. While the ratio remained negative, the less negative value may indicate some progress in addressing the company's interest payment challenges.
The ratio decreased again by December 31, 2023, to -8.01, indicating a setback in the company's ability to cover its interest expenses with operating income.
Finally, as of December 31, 2024, there was a significant positive turnaround in the interest coverage ratio, with it standing at 9.41. This improvement suggests that the company's operating income now comfortably covers its interest expenses, reflecting better financial stability.
Overall, the analysis reveals a volatile trend in Impinj Inc's interest coverage ratio over the years, with the company facing challenges in meeting its interest obligations but showing signs of improvement in more recent periods.
Peer comparison
Dec 31, 2024