Teleflex Incorporated (TFX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 151,013 | 519,094 | 521,063 | 635,733 | 438,726 |
| Interest expense | US$ in thousands | 83,544 | 85,082 | 54,264 | 56,969 | 66,494 |
| Interest coverage | 1.81 | 6.10 | 9.60 | 11.16 | 6.60 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $151,013K ÷ $83,544K
= 1.81
The interest coverage ratio of Teleflex Incorporated has shown a positive trend over the years, starting at 6.60 in December 31, 2020, peaking at 11.16 in December 31, 2021, and gradually declining to 1.81 by December 31, 2024.
A higher interest coverage ratio indicates the company's ability to comfortably meet its interest obligations with its operating income. In 2021, Teleflex had a strong interest coverage, implying a healthy financial position and the ability to easily cover interest expenses.
However, the gradual decline in the interest coverage ratio from 2021 to 2024 raises some concerns about the company's ability to continue servicing its debt obligations with operating income. It is essential for Teleflex to closely monitor its interest coverage ratio to ensure it remains at a sustainable level in the future.
Peer comparison
Dec 31, 2024