USANA Health Sciences Inc (USNA)
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 | 66,324 | 102,715 | 108,813 | 170,699 | 178,455 |
| Interest expense | US$ in thousands | 281 | 262 | 192 | 57 | 507 |
| Interest coverage | 236.03 | 392.04 | 566.73 | 2,994.72 | 351.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $66,324K ÷ $281K
= 236.03
Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. For USANA Health Sciences Inc, the interest coverage ratio has shown significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio stood at a healthy 351.98, indicating the company's operating income was 351.98 times its interest expenses, signifying a strong ability to meet interest obligations.
Subsequently, by the end of December 31, 2021, the interest coverage ratio surged to an impressive 2,994.72, demonstrating a substantial increase in the company's ability to cover its interest charges, reflecting a robust financial position.
However, the ratio dropped significantly by the end of December 31, 2022, to 566.73. This could imply a potential decrease in the company's operating income relative to its interest expenses compared to the previous period.
By the end of December 31, 2023, the interest coverage ratio declined further to 392.04, indicating continued fluctuations in USANA Health Sciences Inc's ability to cover its interest costs efficiently.
Lastly, as of December 31, 2024, the interest coverage ratio decreased to 236.03, suggesting a challenge in meeting interest payments with operating income.
Overall, the trend in the interest coverage ratio for USANA Health Sciences Inc reveals fluctuations in the company's ability to cover its interest expenses over the years, with periods of strength and challenges in meeting interest obligations.