Sarepta Therapeutics Inc (SRPT)

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	260,055	129,442	54,923	46,263	-505,738	-645,961	-852,048	-1,054,752	-636,715	-647,938	-438,168	-292,031	-355,423	-415,258	-567,845	-640,270	-490,137	-551,063	-485,146	-615,596
Interest expense (ttm)	US$ in thousands	18,391	19,150	19,461	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
Interest coverage		14.14	6.76	2.82	2.33	-22.98	-27.53	-25.84	-24.09	-11.96	-10.35	-6.86	-4.59	-5.60	-6.27	-8.86	-10.33	-8.18	-11.11	-11.22	-16.66

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $260,055K ÷ $18,391K
= 14.14

The interest coverage ratio for Sarepta Therapeutics Inc has shown a consistent improvement over the quarters from March 31, 2020, to December 31, 2024. The ratio was negative in the initial quarters, indicating that the company's operating income was not sufficient to cover its interest expenses. However, starting from March 31, 2024, the interest coverage ratio turned positive, indicating that the company's operating income was more than enough to cover its interest obligations. This positive trend suggests an improvement in the company's financial health and its ability to meet its debt obligations comfortably. It is important to note that having a positive interest coverage ratio is generally seen as a positive signal for investors and lenders as it reflects the company's ability to service its debt effectively.