Sarepta Therapeutics Inc (SRPT)
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 | -498,088 | -636,715 | -355,423 | -493,118 | -683,211 |
| Interest expense | US$ in thousands | 22,010 | 53,248 | 63,525 | 59,947 | 30,669 |
| Interest coverage | -22.63 | -11.96 | -5.60 | -8.23 | -22.28 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-498,088K ÷ $22,010K
= -22.63
The interest coverage ratio for Sarepta Therapeutics Inc over the past five years has shown a declining trend. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses.
In 2023, the interest coverage ratio was at -22.63, significantly lower than the ratios in the previous years. This suggests a significant deterioration in the company's ability to meet its interest obligations with its operating income.
The continuous negative trend in the interest coverage ratio raises concerns about the company's financial health and ability to manage its debt effectively. Investors and creditors may view such low interest coverage ratios as a red flag for potential financial distress and may impact the company's borrowing costs and access to credit in the future.
Peer comparison
Dec 31, 2023