Quidel Corporation (QDEL)

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	-1,981,900	-1,841,544	-1,803,144	-1,709,544	186,856	220,500	250,900	446,100	940,494	1,243,523	1,442,117	1,304,000	905,221	1,145,568	1,172,122	1,234,002	1,060,715	478,702	191,036	115,027
Interest expense (ttm)	US$ in thousands	188,700	180,700	168,500	157,200	147,600	145,600	137,600	111,400	74,729	41,383	12,983	4,306	6,659	6,857	7,354	9,198	9,623	10,622	11,977	13,015
Interest coverage		-10.50	-10.19	-10.70	-10.87	1.27	1.51	1.82	4.00	12.59	30.05	111.08	302.83	135.94	167.07	159.39	134.16	110.23	45.07	15.95	8.84

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,981,900K ÷ $188,700K
= -10.50

Quidel Corporation's interest coverage ratio, a key indicator of the company's ability to meet its interest obligations with its operating income, has shown volatility over the past few years. The ratio has fluctuated significantly, starting at 8.84 in March 2020 and steadily increasing to reach a peak of 302.83 in March 2022. This indicates a strong ability to cover interest expenses with operating income during this period.

However, starting from June 2022, the interest coverage ratio began to decline, dropping to 1.82 by June 2023 and further decreasing to negative values by the end of 2024. Negative values for the interest coverage ratio suggest that the company's operating income is insufficient to cover its interest expenses, potentially raising concerns about its financial health and ability to meet debt obligations.

It is essential for investors and stakeholders to closely monitor Quidel Corporation's interest coverage ratio and assess the reasons behind the recent decline to understand the company's financial position and future prospects accurately.