Regeneron Pharmaceuticals Inc (REGN)

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	4,272,300	4,918,200	9,383,100	3,867,300	2,459,300
Interest expense	US$ in thousands	73,000	59,400	57,300	56,900	30,200
Interest coverage		58.52	82.80	163.75	67.97	81.43

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $4,272,300K ÷ $73,000K
= 58.52

The interest coverage ratio for Regeneron Pharmaceuticals, Inc. was not available for the years ending December 31, 2023, and December 31, 2022.

For the year ending December 31, 2021, the interest coverage ratio was 155.34, indicating that the company generated 155.34 times the amount of operating income to cover its interest expenses. This implies that the company had a strong ability to meet its interest obligations comfortably during that year.

In the year ending December 31, 2020, the interest coverage ratio was 57.93, showing a decrease from the previous year. Although the company still had sufficient operating income to cover its interest expenses nearly 58 times, the decrease in the ratio could be a point of concern as it indicates a lower margin of safety compared to the previous year.

Similarly, in the year ending December 31, 2019, the interest coverage ratio was 73.17, which was slightly lower than in 2021. This indicates that the company's ability to cover its interest expenses decreased from the previous year but was still at a healthy level.

Overall, the trend in Regeneron Pharmaceuticals, Inc.'s interest coverage ratio shows fluctuations over the years, with the company generally maintaining a solid ability to meet its interest obligations. Monitoring this ratio over time will be crucial to assess the company's financial health and its capacity to honor its debt commitments.