Adapthealth Corp (AHCO)
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 | -597,596 | 203,499 | 284,176 | -132,157 | 18,702 |
| Interest expense | US$ in thousands | 130,299 | 109,414 | 95,195 | 41,430 | 39,304 |
| Interest coverage | -4.59 | 1.86 | 2.99 | -3.19 | 0.48 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-597,596K ÷ $130,299K
= -4.59
The interest coverage ratio for AdaptHealth Corp has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio improved to 1.78 from 1.74 in 2022, indicating the company's ability to cover its interest expenses by operating income has strengthened slightly. However, it is still below the 2021 level of 2.26. In 2020 and 2019, the interest coverage ratios were significantly lower at 1.38 and 0.76, respectively, suggesting a higher risk of financial distress during those periods. Overall, while there has been some improvement in recent years, the company should continue to monitor its interest coverage ratio to ensure it remains at a healthy and sustainable level.
Peer comparison
Dec 31, 2023