Insulet Corporation (PODD)

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 362,400 350,700 319,600 295,700 244,600 167,800 107,200 42,000 46,300 63,300 91,400 106,600 82,200 28,000 21,700 62,700 57,800 81,273 65,773 46,090
Interest expense (ttm) US$ in thousands 42,700 40,700 30,200 21,600 20,300 16,300 21,300 27,200 26,700 39,100 48,600 56,700 61,200 58,600 53,700 48,400 45,100 41,700 39,723 34,342
Interest coverage 8.49 8.62 10.58 13.69 12.05 10.29 5.03 1.54 1.73 1.62 1.88 1.88 1.34 0.48 0.40 1.30 1.28 1.95 1.66 1.34

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $362,400K ÷ $42,700K
= 8.49

Insulet Corporation's interest coverage ratio has exhibited fluctuations over the observed period. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.

Between March 31, 2020, and September 30, 2021, the interest coverage ratio ranged from a low of 0.40 to a high of 1.95. Notably, the ratio dipped significantly below 1, indicating that the company's operating income was insufficient to cover interest expenses during these periods, which could raise concerns about its financial health and ability to service its debt.

However, from March 31, 2022, onwards, the interest coverage ratio showed a marked improvement, consistently surpassing 1. This signifies that the company's operating income was adequate to cover its interest expenses during these quarters.

In the last three quarters of the data provided (September 30, 2023, December 31, 2023, and March 31, 2024), Insulet Corporation's interest coverage ratio surged significantly, reaching levels of 10.29, 12.05, and 13.69, respectively. These high ratios suggest a substantial improvement in the company's ability to meet its interest obligations, indicating better financial stability and potentially lower default risk.

Overall, the trend in Insulet Corporation's interest coverage ratio shows variability in the past but demonstrates a recent strengthening of its financial position in terms of meeting interest payments. However, continued monitoring of this ratio is advisable to assess the company's ongoing capacity to service its debt.