STAAR Surgical Company (STAA)
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 | -12,611 | 25,704 | 24,937 | 20,149 | 24,071 | 14,964 | 23,754 | 32,627 | 43,099 | 48,778 | 42,910 | 37,576 | 32,933 | 30,033 | 27,078 | 15,374 | 6,612 | 4,877 | 3,329 | 8,225 |
| Interest expense (ttm) | US$ in thousands | 0 | 1,822 | 1,822 | 1,822 | 3,644 | 3,336 | 4,233 | 4,276 | 2,460 | 949 | 75 | 37 | 38 | 36 | 14 | 29 | 238 | 429 | 694 | 933 |
| Interest coverage | — | 14.11 | 13.69 | 11.06 | 6.61 | 4.49 | 5.61 | 7.63 | 17.52 | 51.40 | 572.13 | 1,015.57 | 866.66 | 834.25 | 1,934.14 | 530.14 | 27.78 | 11.37 | 4.80 | 8.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-12,611K ÷ $0K
= —
STAAR Surgical Company's interest coverage ratio shows the company's ability to meet its interest payment obligations. The trend of the interest coverage ratio from March 31, 2020, to December 31, 2024, indicates fluctuations in its ability to cover interest expenses.
The interest coverage ratio was relatively stable between March 31, 2020, and December 31, 2021, ranging from 4.80 to 866.66. During this period, the company demonstrated a strong ability to cover its interest expenses, with a peak ratio of 866.66 on December 31, 2021.
However, from March 31, 2022, to December 31, 2024, the interest coverage ratio started to decline significantly. The ratio dropped to 17.52 on December 31, 2022, and continued to decrease further in the following periods, reaching a low of 4.49 on September 30, 2023, before showing a slight recovery to 14.11 on September 30, 2024.
The declining trend in the interest coverage ratio from 2022 onwards may raise concerns about the company's ability to comfortably meet its interest payment obligations in the future. It suggests that the company may be experiencing challenges in generating sufficient operating income to cover its interest expenses, indicating a potential strain on its financial position.
It is essential for investors and stakeholders to monitor STAAR Surgical Company's interest coverage ratio closely to assess its financial health and sustainability in managing debt obligations.
Peer comparison
Dec 31, 2024