Adaptive Biotechnologies(Adpt) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for ADPT compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Interest Coverage
Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.
Interpretation:
• In '2022', ADPT's interest coverage was -46.28, indicating the firm's ability to meet its interest obligations. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2022' stood at -2.54.
• In '2023', ADPT's interest coverage was -15.33, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2023' stood at -2.47. Industry average increased by 0.07 compared to previous year.
• In '2024', ADPT's interest coverage was -12.78, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Biotechnology: Biological Products (No Diagnostic Substances) in '2024' stood at -0.85. Industry average increased by 1.63 compared to previous year.
Overall, ADPT's interest coverage has been volatile but showed an upward trend over the past 3 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.