Insulet Corporation (PODD)
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 | 342,900 | 250,800 | 46,300 | 82,200 | 54,900 |
| Interest expense | US$ in thousands | 42,700 | 36,200 | 26,700 | 61,200 | 45,100 |
| Interest coverage | 8.03 | 6.93 | 1.73 | 1.34 | 1.22 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $342,900K ÷ $42,700K
= 8.03
The interest coverage ratio for Insulet Corporation has shown steady improvement over the years, indicating the company's increasing ability to meet its interest obligations. In December 2020, the interest coverage was 1.22, which suggests that the company's operating income could cover its interest expenses 1.22 times over.
By December 2024, the interest coverage ratio had significantly improved to 8.03, reflecting a strong increase in the company's ability to cover its interest payments with its operating income. This upward trend indicates that Insulet Corporation has been managing its interest expenses more effectively and has likely strengthened its financial position over the years.
Overall, the improving trend in the interest coverage ratio for Insulet Corporation demonstrates a positive financial development, providing assurance to creditors and investors regarding the company's ability to meet its interest obligations.
Peer comparison
Dec 31, 2024