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. T2 Biosystems's
Operating Income
for the
three
months ended in Sep. 2024 was $-10.16 Mil. T2 Biosystems's Interest Expense for the
three
months ended in Sep. 2024 was $-0.37 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for T2 Biosystems's Interest Coverage or its related term are showing as below:
TTOO's Interest Coverage is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: 9.05 * Ranked among companies with meaningful Interest Coverage only.
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 .
T2 Biosystems Interest Coverage Related Terms
T2 Biosystems Interest Coverage Historical Data
* Premium members only.
The historical data trend for T2 Biosystems'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.
TTOO vs IDTA, NSTM, TMO: Interest Coverage Comparison
For the Diagnostics & Research subindustry, T2 Biosystems'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.
T2 Biosystems Interest Coverage vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, T2 Biosystems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where T2 Biosystems's Interest Coverage falls into.
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:
T2 Biosystems did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
T2 Biosystems (TTOO) has a Interest Coverage of 0 (At Loss) as of Sep. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on T2 Biosystems and its competitors.
Is T2 Biosystems' Interest Coverage too high?
T2 Biosystems' current Interest Coverage is 0 (At Loss). Overall, T2 Biosystems has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does T2 Biosystems' Interest Coverage compare to IDTA and NSTM?
T2 Biosystems' Interest Coverage of 0 (At Loss) can be compared against companies in the Medical Diagnostics & Research industry. The industry median Interest Coverage is 9.05. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Diagnostics & Research company?
The median Interest Coverage among Medical Diagnostics & Research companies is 9.05, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on T2 Biosystems and its competitors. For the Medical Diagnostics & Research industry, the median Interest Coverage is 9.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. T2 Biosystems's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T2 Biosystems stock overvalued right now?
T2 Biosystems (TTOO) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). T2 Biosystems' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For T2 Biosystems (TTOO), the current Interest Coverage is 0 (At Loss) as of Sep. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
T2 Biosystems Inc is a leader in the rapid detection of sepsis-causing pathogens and antibiotic resistance genes. It is dedicated to improving patient care and reducing the cost of care by helping clinicians effectively treat patients faster than ever before. The company's products include the T2Dx Instrument, the T2Bacteria Panel, the T2Candida Panel, the T2Resistance Panel, and the T2Biothreat Panel, and are powered by the proprietary T2 Magnetic Resonance technology.
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