Protagonist Therapeutics Inc (PTGX)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 148,678 | -93,652 | -153,217 | -147,194 | -146,283 | -131,373 | -131,873 | -133,496 | -122,935 | -125,845 | -107,588 | -81,406 | -68,607 | -64,247 | -62,787 | -72,210 | -85,534 | -80,521 | -78,634 | -70,856 |
| Interest expense (ttm) | US$ in thousands | 2,296 | 4,592 | 2,948 | 4,019 | 4,503 | 2,375 | 1,723 | 652 | 168 | 127 | 254 | 273 | 482 | 598 | 638 | 788 | 748 | 674 | 507 | 338 |
| Interest coverage | 64.76 | -20.39 | -51.97 | -36.62 | -32.49 | -55.31 | -76.54 | -204.75 | -731.76 | -990.91 | -423.57 | -298.19 | -142.34 | -107.44 | -98.41 | -91.64 | -114.35 | -119.47 | -155.10 | -209.63 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $148,678K ÷ $2,296K
= 64.76
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. Conversely, a lower ratio may signal potential financial distress.
Analyzing the interest coverage ratios of Protagonist Therapeutics Inc over the past few quarters, we observe significant fluctuations. The company had a very strong interest coverage ratio of 64.76 in March 2024, suggesting ample earnings to cover its interest expenses. However, this was preceded by negative ratios in the three preceding quarters, indicating a potential inability to cover interest payments with operating income during those periods.
The negative interest coverage ratios raise concerns about the company's financial health and its ability to service its debt obligations. These alarming ratios imply that the company's earnings were insufficient to cover its interest expenses, potentially signaling liquidity challenges or financial distress.
It is important for investors and stakeholders to closely monitor Protagonist Therapeutics Inc's interest coverage ratio over time to assess the company's financial stability and ability to manage its debt load effectively. Further analysis of the company's overall financial performance and debt management practices is recommended to better understand the implications of the fluctuating interest coverage ratios.
Peer comparison
Mar 31, 2024