Thermo Fisher Scientific Inc (TMO)

Interest coverage

		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	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	6,859,000	6,866,000	6,712,000	7,135,000	8,393,000	9,070,000	9,638,000	9,800,000	10,028,000	10,561,000	10,709,000	9,937,000	7,794,000	5,955,000	4,475,000	4,580,000	4,594,000	4,510,000	4,476,000	3,917,000
Interest expense (ttm)	US$ in thousands	1,375,000	1,254,000	1,068,000	890,000	726,000	618,000	573,000	547,000	536,000	521,000	537,000	552,000	553,000	549,000	569,000	613,000	676,000	706,000	704,000	693,000
Interest coverage		4.99	5.48	6.28	8.02	11.56	14.68	16.82	17.92	18.71	20.27	19.94	18.00	14.09	10.85	7.86	7.47	6.80	6.39	6.36	5.65

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,859,000K ÷ $1,375,000K
= 4.99

Thermo Fisher Scientific Inc.'s interest coverage ratio has shown consistency and stability over the past eight quarters, ranging from 13.22 to 20.00. The interest coverage ratio indicates the company's ability to meet its interest obligations through its operating income. A higher ratio suggests a stronger ability to cover interest expenses.

The trend in Thermo Fisher's interest coverage ratio indicates that the company has been consistently generating sufficient operating income to cover its interest expenses. The ratios above 1 indicate that the company is capable of meeting its interest obligations, with higher values suggesting a more comfortable margin of safety.

Overall, Thermo Fisher Scientific Inc. exhibits strong interest coverage, which signifies sound financial health and the ability to meet its debt obligations comfortably.