TG Therapeutics Inc (TGTX)

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 41,929 25,677 -192,839 -344,770 -273,594
Interest expense US$ in thousands 1,995 12,615 10,191 5,638 6,329
Interest coverage 21.02 2.04 -18.92 -61.15 -43.23

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $41,929K ÷ $1,995K
= 21.02

The interest coverage ratio of TG Therapeutics Inc has shown a fluctuating trend over the past five years. In December 2020 and December 2021, the company had negative interest coverage ratios of -43.23 and -61.15, respectively, indicating an inability to cover its interest expenses with its operating income.

By December 2022, the interest coverage ratio improved but remained negative at -18.92, suggesting that the company still faced challenges in meeting its interest obligations. However, a positive turn of events occurred by December 2023, with an interest coverage ratio of 2.04, signaling that the company was able to cover its interest expenses with its operating income.

Furthermore, by December 2024, the interest coverage ratio significantly improved to 21.02, demonstrating a strong ability to meet its interest payments and indicating a positive trend in the company's financial health. Overall, the increasing trend in the interest coverage ratio from negative to positive values indicates an improving financial position for TG Therapeutics Inc in terms of its ability to manage its interest obligations.