Globus Medical (Globus Medical) Interest Coverage

: 10.06 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Globus Medical's Operating Income for the three months ended in Dec. 2023 was $26 Mil. Globus Medical's Interest Expense for the three months ended in Dec. 2023 was $-3 Mil. Globus Medical's interest coverage for the quarter that ended in Dec. 2023 was 10.06. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Globus Medical's Interest Coverage or its related term are showing as below:

GMED' s Interest Coverage Range Over the Past 10 Years
Min: 78.21 Med: No Debt Max: No Debt
Current: 78.21

GMED's Interest Coverage is ranked better than
71.83% of 426 companies
in the Medical Devices & Instruments industry
Industry Median: 19.59 vs GMED: 78.21

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Globus Medical Interest Coverage Historical Data

The historical data trend for Globus Medical's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Globus Medical Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

No Debt

N/A

Globus Medical Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																N/A	No Debt	No Debt	N/A	10.06

Competitive Comparison

For the Medical Devices subindustry, Globus Medical's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Globus Medical Interest Coverage Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Globus Medical's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Globus Medical's Interest Coverage falls into.

Globus Medical Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Globus Medical's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Globus Medical's Interest Expense was $0 Mil. Its Operating Income was $202 Mil. And its Long-Term Debt & Capital Lease Obligation was $508 Mil.

GuruFocus does not calculate Globus Medical's interest coverage with the available data.

Globus Medical's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Globus Medical's Interest Expense was $-3 Mil. Its Operating Income was $26 Mil. And its Long-Term Debt & Capital Lease Obligation was $508 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	25.954	/	-2.581
	=	10.06

The higher the ratio, the stronger the company's Financial Strength is.

Globus Medical (NYSE:GMED) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Globus Medical Interest Coverage Related Terms

Thank you for viewing the detailed overview of Globus Medical's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Globus Medical (Globus Medical) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Globus Medical Inc (NYSE:GMED) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

GM0N:Germany

Address

2560 General Armistead Avenue, Audubon, PA, USA, 19403

Website

https://www.globusmedical.com

Globus Medical Inc is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The firm's products are organized into two categories: musculoskeletal solutions, which include medical devices and instruments used mostly for spinal and orthopedic procedures, and enabling technologies, which include advanced computer systems developed for enhancing surgical capabilities. The vast majority of the company's revenue is generated from musculoskeletal solutions products, and more than half of the revenue is earned in the United States.

Executives

Leslie V Norwalk	director	C/O 3661 VALLEY CENTRE DRIVE SUITE 200, SAN DIEGO CA 92130
Dan Wolterman	director	3721 VALLEY CENTRE DR, SUITE 500, SAN DIEGO CA 92130
John A Deford	director	C R BARD INC, 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Dan Lemaitre	director	2 MUSICK, IRVINE CA 92618
Keith W Pfeil	officer: SVP, Chief Financial Officer	GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
Kelly Huller	officer: SVP, General Counsel	2560 GENERAL ARMISTEAD AVENUE, AUDOBON PA 19403
David D Davidar	director, officer: Vice President, Operations	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
James R Tobin	director	C/O CURIS INC, 4 MAGUIRE ROAD, LEXINGTON MA 02421
Daniel T Scavilla	officer: Senior VP and CFO	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
David M Demski	director, officer: President and COO	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
Robert Andrew Douglas	director	21 ATTUNGA ROAD, NEWPORT, NEW SOUTH WALES C3 2106
Stephen T Zarrilli	director	FIBERLINK COMMUNICATIONS CORP., 794 PENLLYN PIKE, BLUE BELL PA 19422
Anthony L Williams	officer: Senior VP of Bus. Devel. & GC	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
Steven Payne	officer: Chief Accounting Officer	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
David C Paul	director, 10 percent owner, officer: Chief Executive Officer	C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403