Repligen Corporation (RGEN)

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	32,996	19,161	27,554	38,061	68,521	119,771	157,762	192,856	217,954	202,321	196,417	187,635	166,257	150,374	127,027	99,062	74,757	58,442	45,615	38,301
Interest expense (ttm)	US$ in thousands	21,355	23,733	18,501	13,274	8,653	1,083	1,143	1,140	1,162	4,136	7,027	9,900	12,714	12,571	12,403	12,263	12,133	11,998	11,803	10,542
Interest coverage		1.55	0.81	1.49	2.87	7.92	110.59	138.02	169.17	187.57	48.92	27.95	18.95	13.08	11.96	10.24	8.08	6.16	4.87	3.86	3.63

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $32,996K ÷ $21,355K
= 1.55

The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. Looking at the data provided for Repligen Corporation's interest coverage ratio over time, we observe a generally increasing trend from March 31, 2020, to June 30, 2022, indicating an improving ability to cover interest expenses.

From a value of 3.63 on March 31, 2020, the interest coverage ratio steadily rises to reach 27.95 on June 30, 2022, demonstrating a significant improvement in the company's capacity to pay interest costs. This strong upward trajectory suggests that Repligen Corporation's operating income is increasingly able to cover its interest expenses, reflecting positive financial health and operational efficiency during this period.

However, there is a notable decline in the interest coverage ratio starting from September 30, 2022, dropping sharply to 7.92 by December 31, 2023, and further decreasing to 1.55 by December 31, 2024. This decline may indicate potential challenges for Repligen Corporation in meeting its interest obligations with its operating income during these periods.

In conclusion, the analysis of Repligen Corporation's interest coverage ratio highlights an overall positive trend of improving financial health and operational efficiency until mid-2022, followed by a significant decline in the ability to cover interest expenses from late 2022 onwards. This trend underscores the importance of monitoring the company's financial performance and managing its interest obligations effectively to ensure long-term financial sustainability.