Acadia Healthcare Company Inc (ACHC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 461,094 | 518,060 | 528,341 | 527,830 | 504,567 | 486,999 | 463,332 | 454,446 | 443,903 | 451,585 | 441,611 | 421,962 | 414,474 | 425,982 | 431,873 | 422,468 | 421,047 | 393,984 | 379,166 | 395,625 |
| Interest expense (ttm) | US$ in thousands | 116,368 | 106,771 | 97,589 | 89,340 | 82,125 | 81,056 | 78,317 | 73,972 | 69,760 | 65,928 | 63,631 | 63,753 | 76,993 | 101,127 | 122,974 | 145,013 | 158,771 | 162,774 | 171,865 | 181,749 |
| Interest coverage | 3.96 | 4.85 | 5.41 | 5.91 | 6.14 | 6.01 | 5.92 | 6.14 | 6.36 | 6.85 | 6.94 | 6.62 | 5.38 | 4.21 | 3.51 | 2.91 | 2.65 | 2.42 | 2.21 | 2.18 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $461,094K ÷ $116,368K
= 3.96
Acadia Healthcare Company Inc's interest coverage has been showing a positive trend over the analyzed periods. The interest coverage ratio, which indicates the company's ability to meet its interest payments with its operating earnings, has been steadily improving from 2.18 as of March 31, 2020, to 3.96 as of December 31, 2024.
The increasing trend in interest coverage suggests that Acadia Healthcare's operating earnings have been consistently sufficient to cover its interest expenses. A ratio above 1 indicates that the company generates enough operating income to meet interest obligations, with higher ratios indicating a more comfortable financial position.
Analysts typically consider an interest coverage ratio of at least 2 as a healthy level, indicating that the company is earning at least twice the amount of its interest payments. Acadia Healthcare's interest coverage comfortably exceeds this benchmark in the most recent periods, indicating a strong financial position with ample earnings to cover its interest obligations.
Overall, the trend of increasing interest coverage ratios for Acadia Healthcare Company Inc reflects a positive financial performance and suggests improved stability and ability to service debt obligations over time.
Peer comparison
Dec 31, 2024