Addus HomeCare Corporation (ADUS)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	92,432	84,869	79,049	74,221	69,078	67,708	67,506	67,583	66,204	58,432	53,645	46,328	45,131	48,324	43,261	40,985	35,701	27,125	25,406	24,599
Interest expense (ttm)	US$ in thousands	11,106	10,620	9,893	9,548	8,907	7,992	7,134	6,410	5,806	4,972	4,038	3,497	3,189	3,250	3,436	3,395	3,105	3,344	4,021	4,723
Interest coverage		8.32	7.99	7.99	7.77	7.76	8.47	9.46	10.54	11.40	11.75	13.29	13.25	14.15	14.87	12.59	12.07	11.50	8.11	6.32	5.21

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $92,432K ÷ $11,106K
= 8.32

The interest coverage ratio of Addus HomeCare Corporation has remained relatively stable over the past eight quarters, ranging from 8.02 to 11.02. This indicates that the company's ability to cover its interest expenses with its operating income has been consistently strong. The ratio has generally been above 8, suggesting that the company generates ample income to meet its interest obligations. The highest interest coverage ratio of 11.02 was observed in Q1 2022, indicating a peak in the company's ability to cover interest expenses during that period. Overall, the consistent and solid interest coverage ratios reflect a healthy financial position for Addus HomeCare Corporation.