Dentsply Sirona Inc (XRAY)
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 | -477,000 | -364,000 | -1,359,000 | -1,321,000 | -1,217,000 | -850,000 | 504,000 | 544,000 | 604,000 | 578,000 | 521,000 | 269,000 | -5,000 | -7,000 | 36,100 | 197,700 | 374,900 | 318,200 | 247,000 | -962,300 |
| Interest expense (ttm) | US$ in thousands | 81,000 | 82,000 | 78,000 | 72,000 | 65,000 | 53,000 | 53,000 | 53,000 | 55,000 | 60,000 | 60,000 | 56,000 | 49,000 | 39,000 | 31,600 | 28,600 | 30,000 | 32,100 | 35,200 | 36,800 |
| Interest coverage | -5.89 | -4.44 | -17.42 | -18.35 | -18.72 | -16.04 | 9.51 | 10.26 | 10.98 | 9.63 | 8.68 | 4.80 | -0.10 | -0.18 | 1.14 | 6.91 | 12.50 | 9.91 | 7.02 | -26.15 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-477,000K ÷ $81,000K
= -5.89
Interest coverage ratio measures a company's ability to meet its interest obligations on existing debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses incurred during a specific period. Looking at the data provided for DENTSPLY Sirona Inc over the last eight quarters, we can see fluctuations in the interest coverage ratio.
The interest coverage ratio for DENTSPLY Sirona Inc has fluctuated over the quarters, ranging from a low of 3.30 in Q3 2023 to a high of 10.72 in Q1 2022. The trend shows a general decline in the ratio over the past few quarters, indicating that the company's ability to cover its interest expenses with its earnings has weakened.
A ratio below 1 indicates that the company is not generating enough earnings to cover its interest payments, which is a sign of financial distress. In contrast, a ratio above 1 suggests that the company has sufficient earnings to cover interest expenses. In the case of DENTSPLY Sirona Inc, the interest coverage ratios are above 1 for all quarters, indicating that the company has been able to meet its interest obligations.
However, the decreasing trend in the interest coverage ratio may raise concerns about the company's ability to service its debt in the future, especially if this trend continues. Investors and creditors should closely monitor the interest coverage ratio along with other financial metrics to assess the company's overall financial health and debt repayment capacity.
Peer comparison
Dec 31, 2023