Dentsply Sirona Inc (XRAY)
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 | -846,000 | -408,000 | -180,000 | -167,000 | -79,042 | 23,903 | -970,097 | -930,097 | -973,055 | -823,000 | 539,000 | 571,000 | 624,000 | 587,600 | 522,600 | 259,100 | -9,800 | -12,000 | 34,200 | 252,700 |
| Interest expense (ttm) | US$ in thousands | 69,000 | 73,000 | 73,000 | 77,000 | 78,000 | 77,000 | 73,000 | 67,000 | 60,000 | 53,000 | 52,000 | 53,000 | 55,000 | 57,000 | 58,500 | 54,800 | 47,500 | 39,900 | 32,000 | 27,700 |
| Interest coverage | -12.26 | -5.59 | -2.47 | -2.17 | -1.01 | 0.31 | -13.29 | -13.88 | -16.22 | -15.53 | 10.37 | 10.77 | 11.35 | 10.31 | 8.93 | 4.73 | -0.21 | -0.30 | 1.07 | 9.12 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-846,000K ÷ $69,000K
= -12.26
The interest coverage ratio of Dentsply Sirona Inc indicates its ability to meet interest obligations with operating income. From March 31, 2020, to June 30, 2021, the company maintained a favorable interest coverage ratio above 1, with values ranging from 1.07 to 11.35, showing the ability to cover interest payments comfortably. However, from September 30, 2021, to December 31, 2024, the interest coverage ratio deteriorated significantly, entering negative territory and reaching as low as -16.22 by December 31, 2022. These low or negative ratios suggest that the company's operating income may not be sufficient to cover its interest expenses during these periods, indicating potential financial strain and risk of default. The situation improved slightly after December 31, 2024, with the interest coverage ratio gradually recovering but remaining below optimal levels. Overall, the trend in Dentsply Sirona Inc's interest coverage ratio shows fluctuations and periods of financial challenges that investors and stakeholders should closely monitor.
Peer comparison
Dec 31, 2024