Quidel Corporation (QDEL)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 139,100 | 185,500 | 216,000 | 322,600 |
| Interest expense (ttm) | US$ in thousands | 39,200 | 39,300 | 39,300 | 38,700 |
| Interest coverage | 3.55 | 4.72 | 5.50 | 8.34 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $139,100K ÷ $39,200K
= 3.55
The interest coverage ratio for Quidel Corporation shows a consistent improvement over the four quarters in 2023, which indicates the company's ability to meet its interest obligations is strengthening. The ratio provides insight into the firm's ability to generate enough operating income to cover its interest expenses, with higher ratios demonstrating a greater capacity to do so. Quidel's interest coverage has increased from 3.55 in December 2023 to 8.34 in March 2023, reflecting a positive trend. This improvement suggests that the company's profitability and cash flow generation are on the rise, which can enhance its financial stability and lower its risk of default on debt obligations.
Peer comparison
Dec 31, 2023