STAAR Surgical Company (STAA)

Interest coverage

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 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 28,097 18,656 26,066 34,489 43,802 50,221 44,353 37,982 33,339 30,033 27,078 15,374 6,769 5,034 3,486 9,152 11,852 10,697 8,946 7,361
Interest expense (ttm) US$ in thousands 12 14 16 18 17 13 9 5 6 11 17 24 30 39 49 63 72 58 41 19
Interest coverage 2,341.42 1,332.57 1,629.12 1,916.06 2,576.59 3,863.15 4,928.11 7,596.40 5,556.50 2,730.27 1,592.82 640.58 225.63 129.08 71.14 145.27 164.61 184.43 218.20 387.42

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $28,097K ÷ $12K
= 2,341.42

The interest coverage ratio for STAAR Surgical Company has experienced fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).

On Dec 31, 2023, the interest coverage ratio was notably high at 2,341.42, indicating a strong ability to cover interest expenses with operating profits. This high ratio suggests that the company's EBIT was significantly higher than its interest expenses.

In the previous quarters, the interest coverage ratio had varied, with values ranging from 1,332.57 to 4,928.11. These fluctuations may indicate changes in the company's earnings and interest expenses over time.

However, it is important to note that the interest coverage ratio was considerably lower in the earlier quarters, such as on Dec 31, 2020, where it was 225.63, and on Mar 31, 2021, where it was 640.58. These lower ratios suggest that the company's ability to cover interest expenses with operating profits was weaker during those periods.

Overall, the increasing trend in the interest coverage ratio from 2021 to 2023 is a positive sign of STAAR Surgical Company's improving financial health and ability to meet its interest obligations comfortably.


Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
STAAR Surgical Company
STAA
2,341.42
National Vision Holdings Inc
EYE
-7.69
The Cooper Companies, Inc. Common Stock
COO
6.12