Teleflex Incorporated (TFX)

Interest coverage

		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	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	168,269	369,012	394,250	420,855	544,907	585,960	542,595	533,381	521,062	575,857	674,189	649,372	649,459	556,275	456,847	384,885	438,731	462,019	448,125	517,068
Interest expense (ttm)	US$ in thousands	83,544	90,700	92,834	89,428	85,082	78,343	68,526	62,183	54,264	47,223	45,837	50,589	56,969	63,679	68,342	67,853	66,494	65,048	67,941	73,017
Interest coverage		2.01	4.07	4.25	4.71	6.40	7.48	7.92	8.58	9.60	12.19	14.71	12.84	11.40	8.74	6.68	5.67	6.60	7.10	6.60	7.08

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $168,269K ÷ $83,544K
= 2.01

Teleflex Incorporated has shown fluctuations in its interest coverage ratio over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.

From March 2020 to June 2021, Teleflex's interest coverage ratio remained relatively stable, ranging between 5.67 and 7.10. However, there was a notable improvement in the ratio in the latter half of 2021 and throughout 2022, reaching a peak of 14.71 in June 2022. This significant increase suggests that the company had ample earnings to cover its interest expenses during this period.

Subsequently, the interest coverage ratio declined from September 2022 to December 2024, indicating a potential decrease in Teleflex's ability to cover interest payments. The ratio dropped to 2.01 by the end of December 2024, which may raise concerns about the company's financial health and its ability to service its debt obligations.

Overall, Teleflex's interest coverage ratio has displayed varying trends over the analyzed period, reflecting changes in the company's profitability and financial risk. Investors and stakeholders should closely monitor this ratio to assess Teleflex's ability to manage its debt and interest obligations effectively.