Acadia Healthcare Company Inc (ACHC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -27,016 | 371,541 | 264,480 | -615,676 | 585,883 |
| Interest expense | US$ in thousands | 4,350 | 4,302 | 6,245 | 15,850 | 15,978 |
| Interest coverage | -6.21 | 86.36 | 42.35 | -38.84 | 36.67 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-27,016K ÷ $4,350K
= -6.21
Acadia Healthcare Company Inc's interest coverage ratio has shown a positive trend from 2019 to 2023. The ratio has consistently increased from 2.16 in 2019 to 6.17 in 2023, indicating the company's improved ability to cover its interest expenses with its operating income. This upward trend signifies a stronger financial position and suggests that Acadia Healthcare has been generating sufficient earnings to comfortably meet its interest obligations. The company's interest coverage ratio peaked at 6.40 in 2022, showcasing a particularly significant improvement in financial health. Overall, the consistent increase in the interest coverage ratio over the years reflects positively on Acadia Healthcare's financial stability and capacity to service its debt obligations.
Peer comparison
Dec 31, 2023