Vicor Corporation (VICR)
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 | -1,310 | -3,166 | 7,152 | 24,801 | 51,358 | 52,128 | 39,428 | 32,863 | 27,201 | 27,983 | 36,951 | 45,662 | 55,602 | 58,306 | 52,437 | 34,461 | 17,368 | 6,658 | 6,607 | 6,955 |
| Interest expense (ttm) | US$ in thousands | 0 | 1,943 | 1,943 | 1,943 | 3,886 | 1,972 | 2,287 | 2,561 | 789 | 779 | 731 | 733 | 755 | 736 | 469 | 193 | 0 | 0 | 0 | 0 |
| Interest coverage | — | -1.63 | 3.68 | 12.76 | 13.22 | 26.43 | 17.24 | 12.83 | 34.48 | 35.92 | 50.55 | 62.29 | 73.65 | 79.22 | 111.81 | 178.55 | — | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,310K ÷ $0K
= —
The interest coverage ratio of Vicor Corporation has shown fluctuations over the reporting periods. In March 2021, the interest coverage ratio was healthy at 178.55, indicating the company's ability to cover its interest expenses comfortably. However, this ratio started declining from that point onwards.
By June 2022, the interest coverage ratio had decreased to 50.55, showing a significant drop compared to the previous year. This downward trend continued, with the ratio falling to its lowest point in December 2024, where it reached -1.63, suggesting that the company's operating income was insufficient to cover its interest expenses during that period.
It is important to note that negative interest coverage ratios, such as the one in December 2024, raise concerns about the company's financial health and its ability to meet its debt obligations. This deteriorating trend in interest coverage ratios indicates a potential strain on Vicor Corporation's ability to service its debt, which could lead to liquidity issues and increase financial risk. Investors and creditors may closely monitor this metric to assess the company's creditworthiness and overall financial stability.
Peer comparison
Dec 31, 2024