Bio-Techne Corp (TECH)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	203,079	249,274	265,748	296,817	349,693	338,841	329,138	357,548	321,647	251,201	227,735	190,623	162,952	218,376	221,289	316,404	295,677	257,913	261,596	133,924
Interest expense (ttm)	US$ in thousands	15,736	16,929	14,291	12,318	11,215	10,018	11,144	11,690	11,309	12,095	12,262	12,945	13,952	15,278	17,104	18,391	19,197	20,175	20,802	21,689
Interest coverage		12.91	14.72	18.60	24.10	31.18	33.82	29.53	30.59	28.44	20.77	18.57	14.73	11.68	14.29	12.94	17.20	15.40	12.78	12.58	6.17

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $203,079K ÷ $15,736K
= 12.91

Bio-Techne Corp's interest coverage has shown a generally positive trend over the past few quarters. The interest coverage ratio measures the company's ability to service its debt obligations from its operating income. A higher ratio indicates that the company is more capable of meeting its interest payments.

Looking at the data provided, we can see that the interest coverage ratio has increased steadily from 6.17 in September 2019 to a peak of 33.82 in March 2023, before experiencing some fluctuations. The highest interest coverage ratio of 33.82 in March 2023 suggests that Bio-Techne Corp had a strong ability to cover its interest expenses with its operating income during that period.

Overall, the interest coverage ratios above 1 indicate that Bio-Techne Corp generated enough operating income to cover its interest expenses in each of the reported periods. This trend reflects positively on the company's financial health and its ability to manage its debt obligations effectively.