Bio-Techne Corp (TECH)

Interest coverage

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands — 198,660 353,327 319,047 170,725
Interest expense US$ in thousands 8,509 15,736 11,215 11,309 13,952
Interest coverage 0.00 12.62 31.50 28.21 12.24

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $8,509K
= 0.00

The interest coverage ratio of Bio-Techne Corp demonstrates significant fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company exhibited a strong ability to cover its interest expenses, with a ratio of 12.24, indicating that operating earnings substantially exceeded interest obligations. This favorable coverage improved markedly by June 30, 2022, reaching a peak of 28.21, further underscoring the company's robust earnings relative to interest expenses during that year.

The ratio maintained a high level of 31.50 as of June 30, 2023, reflecting consistent and strong earnings power that comfortably covered interest expenses. However, a notable decline is observed in the subsequent year, with the ratio dropping sharply to 12.62 as of June 30, 2024. While still above typical concern thresholds, this decrease indicates a reduction in the company's ability to easily meet its interest obligations compared to previous periods.

By June 30, 2025, the interest coverage ratio is reported as 0.00, suggesting that the company's operating earnings either fell to zero or were insufficient to cover interest expenses at the time of measurement. This indicates a critical situation where earnings do not support the interest obligations, which could be due to operational challenges, impairments, or extraordinary expenses.

Overall, the historical data reflect a period of strong interest coverage in 2021-2023, followed by a significant deterioration in 2024, culminating in a situation where the company's earnings no longer support its interest payments in 2025. This trend warrants further investigation into operational factors or restructuring efforts that may have impacted profitability and earnings capacity.