Veeco Instruments Inc (VECO)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -16,635 | -29,135 | -36,251 | 57,768 | 62,495 | 62,297 | 60,662 | 61,113 | 54,060 | 45,473 | 36,189 | 20,541 | 16,355 | -16,485 | -29,847 | -37,656 | -55,918 | -167,992 | -165,719 | -416,963 |
| Interest expense (ttm) | US$ in thousands | 11,769 | 11,588 | 11,697 | 11,493 | 11,510 | 16,301 | 20,522 | 24,494 | 28,361 | 27,294 | 26,612 | 25,833 | 24,740 | 23,726 | 22,850 | 22,304 | 22,083 | 21,894 | 21,947 | 21,716 |
| Interest coverage | -1.41 | -2.51 | -3.10 | 5.03 | 5.43 | 3.82 | 2.96 | 2.50 | 1.91 | 1.67 | 1.36 | 0.80 | 0.66 | -0.69 | -1.31 | -1.69 | -2.53 | -7.67 | -7.55 | -19.20 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-16,635K ÷ $11,769K
= -1.41
Veeco Instruments Inc's interest coverage ratio has shown a consistent improvement over the past eight quarters. The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses.
In Q4 2023, Veeco Instruments Inc had an interest coverage ratio of 58.92, reflecting a strong ability to cover its interest payments with its earnings. This represents a significant improvement compared to the ratios in the previous quarters. The trend of increasing interest coverage ratios from Q1 2022 to Q4 2023 indicates that the company's earnings have been consistently growing at a faster pace than its interest expenses.
Overall, the improving trend in Veeco Instruments Inc's interest coverage ratio is a positive sign, suggesting that the company has been generating sufficient earnings to comfortably meet its interest obligations. This trend may indicate financial strength and stability, which could potentially attract investors and lenders.
Peer comparison
Dec 31, 2023