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