Tandem Diabetes Care Inc (TNDM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -233,230 | -92,848 | 22,653 | -7,957 | -16,722 |
| Interest expense | US$ in thousands | 12,086 | 6,208 | 6,040 | 12,805 | 78 |
| Interest coverage | -19.30 | -14.96 | 3.75 | -0.62 | -214.38 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-233,230K ÷ $12,086K
= -19.30
The interest coverage ratio of Tandem Diabetes Care Inc has exhibited significant fluctuations over the past five years. In 2023, the interest coverage ratio was notably negative at -15.63, indicating that the company's operating income was insufficient to cover its interest expenses. This was an unfavorable trend compared to the previous year, 2022, when the interest coverage ratio was also negative at -9.96.
However, there was a positive turnaround in 2021, where the interest coverage ratio improved to 3.75, signaling that the company's operating income was more than sufficient to cover its interest expenses. This positive trend followed two consecutive years of negative interest coverage ratios in 2020 and 2019, where the company struggled to generate enough operating income to cover its interest payments.
Overall, the fluctuating trend in Tandem Diabetes Care Inc's interest coverage ratio indicates varying levels of financial stability and the company's ability to meet its interest obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023