STAAR Surgical Company (STAA)
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 | 28,097 | 43,802 | 33,339 | 6,769 | 11,852 |
| Interest expense | US$ in thousands | 12 | 17 | 6 | 30 | 72 |
| Interest coverage | 2,341.42 | 2,576.59 | 5,556.50 | 225.63 | 164.61 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $28,097K ÷ $12K
= 2,341.42
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt obligations. A higher interest coverage ratio indicates a stronger ability to meet interest payments.
Analyzing the trend of STAAR Surgical Company's interest coverage ratio over the past five years reveals a significant fluctuation. In 2023, the interest coverage ratio was 2,341.42, which was a considerable increase from the previous year's ratio of 2,576.59. However, the ratio in 2023 was still significantly high compared to earlier years, indicating a strong ability to cover interest obligations.
In 2021, STAAR Surgical Company showed a substantial improvement in its interest coverage ratio, reaching 5,556.50, which was a significant jump from the ratios in 2020 and 2019. This high ratio suggests a robust ability to cover interest expenses with operating income.
On the other hand, the interest coverage ratio in 2020 and 2019 was relatively lower at 225.63 and 164.61, respectively. This suggests a lower ability to cover interest payments with operating income in those years.
Overall, STAAR Surgical Company has demonstrated fluctuations in its interest coverage ratio over the past five years, with significant improvements in some years and lower ratios in others. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's financial health and ability to meet debt obligations.
Peer comparison
Dec 31, 2023