Regenxbio Inc (RGNX)
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 | -256,784 | -257,151 | 167,524 | -105,239 | -148,998 |
| Interest expense | US$ in thousands | 6,862 | 23,254 | 26,277 | 771 | 107,221 |
| Interest coverage | -37.42 | -11.06 | 6.38 | -136.50 | -1.39 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-256,784K ÷ $6,862K
= -37.42
Regenxbio Inc's interest coverage ratio has exhibited significant fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet its interest obligations using its earnings before interest and taxes (EBIT).
In 2019, Regenxbio Inc had a positive interest coverage ratio of 6.26, suggesting a comfortable ability to cover interest expenses. However, this ratio decreased substantially in 2020 to an undisclosed figure. In 2021, there was a significant decline in the interest coverage ratio to -11.47, indicating that the company's EBIT was insufficient to cover its interest payments.
The situation worsened in 2022, as the interest coverage ratio dropped to -39.22. A negative interest coverage ratio implies that the company's EBIT is insufficient to cover its interest expenses, raising concerns about its financial health and ability to service its debt obligations.
It is important for Regenxbio Inc to closely monitor and improve its interest coverage ratio to ensure financial stability and mitigate potential liquidity risks associated with its interest payments.
Peer comparison
Dec 31, 2023