Protagonist Therapeutics Inc (PTGX)
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 | -93,652 | -131,373 | -125,845 | -64,252 | -77,709 |
| Interest expense | US$ in thousands | — | 3,369 | 2,481 | 598 | 169 |
| Interest coverage | — | -38.99 | -50.72 | -107.44 | -459.82 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-93,652K ÷ $—K
= —
The interest coverage ratio for Protagonist Therapeutics Inc has been deteriorating over the years. In 2019, the company had an extremely low interest coverage ratio of -459.82, indicating a severe inability to cover its interest expenses with its earnings. The situation improved slightly in the following years, but still remained at concerning levels with ratios of -107.44 in 2020, -50.72 in 2021, and -38.99 in 2022.
The negative values indicate that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial health and ability to meet its debt obligations. It indicates a high financial risk and potential difficulties in servicing its debt.
Further analysis and close monitoring of Protagonist Therapeutics Inc's financial performance and debt management strategies are advisable to assess the company's ability to improve its interest coverage ratio and ensure its long-term financial stability.
Peer comparison
Dec 31, 2023