Dentsply Sirona Inc (XRAY)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -94,000 | -1,197,000 | 622,000 | -2,000 | 368,000 |
| Interest expense | US$ in thousands | 81,000 | 65,000 | 55,000 | 48,000 | 30,000 |
| Interest coverage | -1.16 | -18.42 | 11.31 | -0.04 | 12.27 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-94,000K ÷ $81,000K
= -1.16
Based on the information provided, DENTSPLY Sirona Inc's interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt obligations.
In 2023, the interest coverage ratio was 3.52, which represented a decrease from the previous year. This suggests that the company may have had a smaller buffer to cover its interest expenses compared to 2022. However, the ratio still indicates that DENTSPLY Sirona Inc was able to cover its interest payments more than three times over.
Looking back at 2021, the interest coverage ratio was 11.36, reflecting a significant improvement from the previous year. This indicates a strong ability to pay interest obligations from operating profits. In contrast, 2020 saw a dip in the ratio to 4.72, implying a relative decrease in the company's ability to service its debt compared to 2019, when the ratio was quite high at 16.36.
Overall, despite some fluctuations, DENTSPLY Sirona Inc has generally maintained a reasonable interest coverage ratio over the past five years, indicating a satisfactory ability to meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2023