Bio-Techne Corp (TECH)

Interest coverage

Jun 30, 2025 Mar 31, 2025 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 133,848 202,548 234,287 236,584 246,400 261,162 268,020 294,182 297,722 274,920 282,488 274,075 277,432 231,048 215,027 202,581 189,368 238,835 215,879 196,551
Interest expense (ttm) US$ in thousands 8,509 8,840 10,838 13,019 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
Interest coverage 15.73 22.91 21.62 18.17 15.66 15.43 18.75 23.88 26.55 27.44 25.35 23.45 24.53 19.10 17.54 15.65 13.57 15.63 12.62 10.69

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $133,848K ÷ $8,509K
= 15.73

The interest coverage ratios of Bio-Techne Corp over the specified periods demonstrate a generally favorable capacity to meet interest obligations from operating earnings. This metric, which measures the company's ability to cover interest expenses with its earnings before interest and taxes (EBIT), exhibits notable fluctuations from September 2020 through June 2025.

Initially, the ratio increased from 10.69 in September 2020 to a peak of 27.44 in March 2023, indicating a strengthening position in covering interest costs and suggesting improved operational profitability and/or reduced interest expenses. The highest interest coverage was observed on March 31, 2023.

Subsequently, the ratio experienced a decline, falling to 18.75 by December 2023, before continuing downward trend estimates to 15.43 by March 2024, and stabilizing around 15.66 on June 2024. A slight recovery is seen later, with ratios reaching 21.62 in December 2024 and 22.91 in March 2025, indicating a renewed upward trend in coverage capacity.

Overall, the interest coverage ratios illustrate that Bio-Techne Corp maintained a robust buffer over the analyzed period, particularly during the years from 2020 through early 2023. The decline observed thereafter suggests some easing in either operational earnings or increasing interest obligations but remains within a range that generally indicates a comfortable margin for debt servicing. Variability across periods reflects changes in profitability, interest expenses, and possibly strategic financial management practices.