Supernus Pharmaceuticals Inc (SUPN)

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	85,062	63,657	32,701	-6,085	4,194	38,528	29,919	59,270	65,413	35,337	68,942	92,510	92,871	130,083	153,997	170,320	188,083	188,802	175,255	170,365
Interest expense (ttm)	US$ in thousands	0	-2,414	-2,414	-1,504	1	4,009	5,733	6,633	7,070	7,683	11,884	15,541	19,696	19,266	19,429	19,777	19,435	18,935	18,509	18,083
Interest coverage		—	—	—	—	4,194.00	9.61	5.22	8.94	9.25	4.60	5.80	5.95	4.72	6.75	7.93	8.61	9.68	9.97	9.47	9.42

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $85,062K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest obligations on its debt. A higher interest coverage ratio indicates a company is more capable of servicing its debt. Looking at Supernus Pharmaceuticals Inc's interest coverage over the years, we can observe fluctuations in the ratio:

- The interest coverage ratio was relatively stable around 9.0 in the period from March 2020 to December 2021. This suggests the company had a strong ability to cover its interest expenses with its operating income during this time.
- From March 2022 to June 2023, the interest coverage ratio declined significantly, indicating a potential decrease in the company's ability to cover its interest payments. This could be a red flag signaling financial strain or declining profitability.
- In December 2023, the interest coverage ratio spiked dramatically to 4,194.00, which is likely an anomaly or data error given the significant deviation from previous figures.
- For the period from March 2024 onwards, no data is provided, so we cannot assess the company's interest coverage during this time.

In conclusion, while Supernus Pharmaceuticals Inc maintained a relatively healthy interest coverage ratio in the earlier years, the fluctuating trend observed in later years should be carefully monitored to ensure the company's ability to meet its debt obligations remains sustainable.