Bio-Techne Corp (TECH)

Interest coverage

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	206,686	349,695	321,647	162,952	295,674
Interest expense	US$ in thousands	15,736	11,215	11,309	13,952	19,197
Interest coverage		13.13	31.18	28.44	11.68	15.40

June 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $206,686K ÷ $15,736K
= 13.13

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

Bio-Techne Corp's interest coverage ratio has fluctuated over the past five years. In Jun 2024, the interest coverage ratio was 13.13, lower than the ratios in the previous two years. This may raise concerns about the company's ability to cover its interest payments.

In Jun 2023, the interest coverage ratio was significantly higher at 31.18, showing a strong ability to cover interest expenses. The ratio remained robust in Jun 2022 at 28.44, indicating a consistent ability to meet interest obligations.

However, in Jun 2021, the interest coverage ratio dropped to 11.68, raising some red flags about the company's ability to cover interest payments. The ratio improved in Jun 2020 to 15.40, but it was still lower compared to the ratios in the preceding years.

In summary, Bio-Techne Corp's interest coverage ratio has shown variability over the past five years, with some years indicating strong ability to cover interest payments while others showing a slight decline. It would be prudent to monitor this ratio closely to ensure the company's financial health and ability to meet its debt obligations.