Thermo Fisher Scientific Inc (TMO)
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 | 8,336,000 | 8,109,000 | 7,892,000 | 7,490,000 | 7,489,000 | 7,494,000 | 7,272,000 | 7,469,000 | 8,575,000 | 9,297,000 | 9,889,000 | 10,129,000 | 10,386,000 | 10,717,000 | 10,833,000 | 10,014,000 | 7,871,000 | 6,057,000 | 4,611,000 | 4,258,000 |
| Interest expense (ttm) | US$ in thousands | 1,390,000 | 1,463,000 | 1,466,000 | 1,438,000 | 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 |
| Interest coverage | 6.00 | 5.54 | 5.38 | 5.21 | 5.45 | 5.98 | 6.81 | 8.39 | 11.81 | 15.04 | 17.26 | 18.52 | 19.38 | 20.57 | 20.17 | 18.14 | 14.23 | 11.03 | 8.10 | 6.95 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,336,000K ÷ $1,390,000K
= 6.00
Thermo Fisher Scientific Inc's interest coverage ratio has shown a generally positive trend from March 31, 2020, to December 31, 2021, peaking at 20.57 on September 30, 2021. This indicates that the company's operating income was significantly more than enough to cover its interest expenses during this period. However, the interest coverage ratio started to decline thereafter, reaching 5.45 on December 31, 2023, and further dropped to 5.21 on March 31, 2024.
The decreasing trend in the interest coverage ratio suggests that Thermo Fisher Scientific Inc may be facing challenges in generating sufficient earnings to cover its interest obligations. Investors and creditors may view this declining trend as a potential risk, as a lower interest coverage ratio indicates a higher likelihood of financial distress in meeting interest payments. It would be important for the company to closely monitor its interest coverage ratio and take appropriate measures to improve its financial performance and ensure sustainable debt repayment capabilities in the future.
Peer comparison
Dec 31, 2024
See also:
Thermo Fisher Scientific Inc Interest Coverage (Quarterly Data)