Revvity Inc. (RVTY)

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	Jul 5, 2020	Apr 5, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	367,297	325,706	280,672	261,037	801,582	861,889	932,684	1,109,269	758,645	921,073	995,811	1,087,497	1,335,883	1,512,657	1,559,784	1,393,377	947,111	550,112	383,686	296,304
Interest expense (ttm)	US$ in thousands	96,278	98,079	99,182	100,472	98,813	96,739	97,184	98,305	103,955	109,168	126,768	116,390	102,128	86,811	55,337	50,173	49,712	51,729	55,821	61,442
Interest coverage		3.81	3.32	2.83	2.60	8.11	8.91	9.60	11.28	7.30	8.44	7.86	9.34	13.08	17.42	28.19	27.77	19.05	10.63	6.87	4.82

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $367,297K ÷ $96,278K
= 3.81

Revvity Inc.'s interest coverage ratio has shown fluctuations over the periods provided in the data. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.

In April 2020, the interest coverage ratio was 4.82, indicating that the company generated enough operating income to cover its interest expenses nearly 5 times. Over the following quarters, the ratio improved significantly, reaching a peak of 28.19 in June 2021, showing a strong ability to meet its interest obligations.

However, starting from September 2021, the interest coverage ratio began to decline, dropping to 7.30 by December 2022. This downward trend continued, with the ratio falling to 2.60 in March 2024, suggesting a potential strain on the company's ability to cover its interest payments with operating income.

It is worth noting that a higher interest coverage ratio is generally preferred as it indicates a stronger financial position and lower risk of default on debt obligations. The declining trend in Revvity Inc.'s interest coverage ratio towards the latter periods underscores the importance of monitoring the company's ability to meet its interest obligations from its operational earnings.