Veeco Instruments Inc (VECO)
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 | 79,879 | -16,568 | 60,296 | 56,710 | 23,943 |
| Interest expense | US$ in thousands | 11,045 | 11,770 | 9,311 | 26,020 | 24,739 |
| Interest coverage | 7.23 | -1.41 | 6.48 | 2.18 | 0.97 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $79,879K ÷ $11,045K
= 7.23
Veeco Instruments Inc's interest coverage ratio has exhibited significant fluctuations over the past few years. The ratio stood at 0.97 at December 31, 2020, indicating that the company's operating income was barely sufficient to cover its interest expenses.
By December 31, 2021, the interest coverage ratio improved to 2.18, suggesting a better ability to meet interest obligations. This positive trend continued into December 31, 2022, with a notable increase to 6.48, indicating a strong ability to service its interest payments comfortably.
However, on December 31, 2023, the interest coverage ratio declined sharply to -1.41, signaling that Veeco Instruments Inc's operating income was insufficient to cover its interest expenses, which raises concerns about the company's financial health and ability to meet debt obligations.
The situation improved significantly by December 31, 2024, as the interest coverage ratio rebounded to 7.23, indicating a robust ability to cover interest expenses. Overall, the fluctuating trend in Veeco Instruments Inc's interest coverage ratio necessitates further investigation into its financial performance and debt management strategies.
Peer comparison
Dec 31, 2024