Vericel Corp Ord (VCEL)

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 11,124 5,264 2,215 1,873 -1,768 -9,172 -11,827 -15,899 -15,622 -18,257 -16,736 -11,506 -7,578 3,191 11,741 7,186 5,628 928 -92 -12,366
Interest expense (ttm) US$ in thousands 614 616 612 608 600 667 622 493 366 144 40 21 4 4 5 5 6 7 7 8
Interest coverage 18.12 8.55 3.62 3.08 -2.95 -13.75 -19.01 -32.25 -42.68 -126.78 -418.40 -547.90 -1,894.50 797.75 2,348.20 1,437.20 938.00 132.57 -13.14 -1,545.75

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $11,124K ÷ $614K
= 18.12

Vericel Corp Ord's interest coverage ratio has shown significant fluctuations over the given period. The ratio was negative for several quarters, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. However, starting from the end of 2020, the interest coverage ratio improved steadily, reaching positive levels and even exceeding 1, indicating that the company's operating income was more than sufficient to cover its interest expenses.

The interest coverage ratio peaked at 2,348.20 as of June 30, 2021, reflecting a strong ability to cover interest payments. Subsequently, the ratio declined but remained positive until the end of 2023. However, in the last quarter of 2023 and throughout 2024, the interest coverage ratio tapered off and eventually turned negative again, indicating a potential strain on the company's ability to cover interest expenses with its operating income.

Overall, the trend in Vericel Corp Ord's interest coverage ratio shows both positive and negative signals regarding the company's financial health and ability to meet its interest obligations. It is essential for stakeholders to closely monitor this ratio to assess the company's solvency and financial stability.