Repligen Corporation (RGEN)

Interest coverage

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 44,957 56,207 195,941 173,114 74,557
Interest expense US$ in thousands 20,731 10,026 1,162 12,714 12,133
Interest coverage 2.17 5.61 168.62 13.62 6.14

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $44,957K ÷ $20,731K
= 2.17

The interest coverage ratio measures a company's ability to meet its interest payment obligations with its earnings. Looking at the data provided for Repligen Corporation, we observe the following trend:

- As of December 31, 2020, the interest coverage ratio stood at 6.14, indicating that the company was generating enough operating income to cover its interest expenses nearly six times over.

- By December 31, 2021, the ratio improved significantly to 13.62, signaling a healthier financial position with increased earnings relative to interest obligations.

- The interest coverage ratio spiked to 168.62 as of December 31, 2022, showcasing a remarkable improvement in the company's ability to comfortably meet its interest payments.

- However, by December 31, 2023, the interest coverage ratio dropped to 5.61, indicating a slight decline in the company's ability to cover its interest expenses compared to the previous year.

- The trend continued to show a decrease as of December 31, 2024, with the interest coverage ratio falling to 2.17, suggesting that the company may be facing challenges in meeting its interest payments with its current level of earnings.

Overall, while the data reveals fluctuations in the interest coverage ratio over the years, it is important for Repligen Corporation to closely monitor and manage its financial leverage to ensure sustainable coverage of interest expenses in the long term.