Sarepta Therapeutics Inc (SRPT)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 53,913 | -498,088 | -638,311 | -852,048 | -1,054,752 | -636,715 | -647,938 | -438,168 | -292,031 | -355,423 | -419,337 | -569,939 | -641,098 | -493,118 | -549,965 | -486,033 | -617,749 | -683,211 | -591,034 | -538,838 |
| Interest expense (ttm) | US$ in thousands | 19,853 | 22,010 | 23,464 | 32,971 | 43,775 | 53,248 | 62,608 | 63,867 | 63,670 | 63,525 | 66,207 | 64,101 | 61,983 | 59,947 | 49,607 | 43,236 | 36,949 | 30,669 | 29,528 | 32,691 |
| Interest coverage | 2.72 | -22.63 | -27.20 | -25.84 | -24.09 | -11.96 | -10.35 | -6.86 | -4.59 | -5.60 | -6.33 | -8.89 | -10.34 | -8.23 | -11.09 | -11.24 | -16.72 | -22.28 | -20.02 | -16.48 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $53,913K ÷ $19,853K
= 2.72
Sarepta Therapeutics Inc's interest coverage ratio has shown significant fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
In the most recent quarter, ending March 31, 2024, Sarepta Therapeutics Inc reported an interest coverage ratio of 2.72. This indicates that the company generated 2.72 times the amount of operating income needed to cover its interest expenses, suggesting a relatively healthy ability to meet its interest obligations.
However, in the previous quarter, the interest coverage ratio was notably negative at -22.63, implying that the company's operating income was insufficient to cover its interest expenses during that period. This negative figure raises concerns about the company's financial health and ability to service its debt obligations.
Looking back further, we observe a trend of volatile and inconsistent interest coverage ratios, with several quarters showing negative ratios or values significantly below ideal levels. Such fluctuations may indicate variability in the company's profitability and ability to manage its debt burden effectively.
Overall, it is essential for investors and stakeholders to closely monitor Sarepta Therapeutics Inc's interest coverage ratio over time to assess the company's financial stability and ability to meet its interest obligations.
Peer comparison
Mar 31, 2024