Veeco Instruments Inc (VECO)
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 | 79,879 | 99,993 | 97,741 | -3,079 | -16,569 | -29,099 | -36,251 | 57,768 | 62,495 | 62,269 | 60,645 | 61,096 | 54,041 | 50,175 | 40,649 | 24,939 | 20,580 | -16,952 | -30,094 | -37,796 |
| Interest expense (ttm) | US$ in thousands | 11,045 | 11,331 | 11,227 | 11,513 | 11,769 | 11,588 | 11,697 | 11,493 | 11,510 | 14,425 | 18,646 | 22,618 | 26,485 | 27,294 | 26,612 | 25,833 | 24,740 | 23,726 | 22,850 | 22,304 |
| Interest coverage | 7.23 | 8.82 | 8.71 | -0.27 | -1.41 | -2.51 | -3.10 | 5.03 | 5.43 | 4.32 | 3.25 | 2.70 | 2.04 | 1.84 | 1.53 | 0.97 | 0.83 | -0.71 | -1.32 | -1.69 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $79,879K ÷ $11,045K
= 7.23
Veeco Instruments Inc's interest coverage ratio has shown fluctuations over the analyzed period. The ratio was negative for several quarters, indicating that the company's operating income was insufficient to cover its interest expense during those periods. However, there has been a gradual improvement in the interest coverage ratio from negative values to positive figures.
From March 31, 2021, onwards, the interest coverage ratio consistently improved, surpassing 1 which indicates that the company's operating income was sufficient to cover its interest expenses. The ratio continued to increase steadily, reaching its peak in June 30, 2024. This positive trend suggests that Veeco Instruments Inc's ability to meet its interest payments has improved significantly over the analyzed period.
However, there was a notable decline in the interest coverage ratio in the subsequent quarters ending September 30, 2024, and December 31, 2024. It is worth monitoring these fluctuations to ensure that the company maintains a sustainable level of interest coverage in the future.
Peer comparison
Dec 31, 2024