Regeneron Pharmaceuticals Inc (REGN)

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	3,956,100	4,131,800	4,080,900	4,113,100	4,272,300	4,448,500	4,845,000	4,719,500	4,918,200	6,093,600	6,399,300	9,190,200	9,383,100	8,105,000	7,298,800	4,460,200	3,867,300	3,524,400	3,276,100	2,580,200
Interest expense (ttm)	US$ in thousands	55,200	63,000	67,000	71,100	73,000	72,100	69,600	63,800	59,400	56,100	55,000	56,300	57,300	58,000	70,100	65,400	56,900	48,800	30,300	28,600
Interest coverage		71.67	65.58	60.91	57.85	58.52	61.70	69.61	73.97	82.80	108.62	116.35	163.24	163.75	139.74	104.12	68.20	67.97	72.22	108.12	90.22

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,956,100K ÷ $55,200K
= 71.67

Regeneron Pharmaceuticals Inc's interest coverage ratio has demonstrated fluctuations over the analyzed periods. It indicates the company's ability to meet its interest obligations based on its operating income.

The interest coverage ratio was notably high in December 2021 at 163.75, implying that the company's operating income could cover its interest expenses approximately 164 times. This suggests a strong financial position and high earnings relative to interest costs.

However, the ratio started to decline from March 2022 onwards, reaching its lowest point by December 2024 at 71.67. This could indicate a decrease in operating income relative to interest expenses, potentially posing a higher risk regarding the company's ability to cover interest payments comfortably.

Overall, it is essential to closely monitor Regeneron Pharmaceuticals Inc's interest coverage ratio to assess its financial health and ability to manage debt obligations effectively.