Supernus Pharmaceuticals Inc (SUPN)

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	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	165,694	166,697	162,190	152,235
Interest expense (ttm)	US$ in thousands	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	18,207	21,355	20,067	19,002
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	9.10	7.81	8.08	8.01

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,194K ÷ $1K
= 4,194.00

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.

Analyzing Supernus Pharmaceuticals Inc's interest coverage ratio over the past 8 quarters, we observe some fluctuations. In Q4 2023, the interest coverage ratio was 5.55, indicating that the company generated 5.55 times the amount of operating income to cover its interest expenses for that quarter. This was lower than the previous quarter's ratio of 6.57 in Q3 2023, but still considered relatively healthy.

Looking further back, Q2 2023 had an interest coverage ratio of 3.07, which was considerably lower compared to other quarters in 2023. However, this ratio improved significantly in Q1 2023 to 7.01, demonstrating the company's enhanced ability to cover its interest payments.

Comparing the recent quarters to those in 2022, we see a mix of higher and lower interest coverage ratios. Notably, in Q3 2022, the ratio was 1.83, indicating a lower level of ability to cover interest expenses during that period.

Overall, while there have been fluctuations in Supernus Pharmaceuticals Inc's interest coverage ratio over the past 8 quarters, the company has generally maintained a satisfactory level of coverage, with some quarters showing stronger performance than others. Monitoring this ratio over time will be essential to assess the company's financial health and ability to meet its debt obligations effectively.