Proto Labs Inc (PRLB)

Interest coverage is a financial ratio that measures a company's ability to meet its interest payments on outstanding debt. The ratio indicates how many times a company can cover its interest expenses with its earnings before interest and taxes (EBIT).

Analyzing the interest coverage ratios of Proto Labs Inc over the past few years, we observe significant fluctuations in the company's ability to cover its interest obligations. As of December 31, 2020, the interest coverage ratio stood at 19.25, indicating that Proto Labs had substantial earnings to cover its interest payments.

However, there was a drastic improvement in the interest coverage ratio by December 31, 2021, reaching an exceptionally high level of 255.33. This surge suggests a remarkable increase in Proto Labs' ability to easily meet its interest obligations compared to the previous year.

The interest coverage ratio took a sharp downturn by December 31, 2022, plummeting to 0.22. This significant decrease raises concerns about Proto Labs' ability to generate sufficient earnings to cover its interest expenses during that period.

The ratio bounced back by December 31, 2023, reaching a healthier level of 25.61, indicating an improvement in the company's capacity to cover its interest costs compared to the previous year. However, the absence of data for December 31, 2024, prevents us from analyzing the most recent period.

In conclusion, while Proto Labs Inc experienced fluctuations in its interest coverage ratios over the years, the company demonstrated both strengths and weaknesses in managing its interest obligations. It is crucial for investors and stakeholders to monitor these ratios continuously to assess the company's financial health and stability.

Peer comparison

Dec 31, 2024