Adapthealth Corp (AHCO)

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	-597,589	-325,782	180,809	177,374	203,555	229,442	273,643	339,734	284,124	151,380	13,386	-87,420	-132,193	-64,805	-13,158	-12,386	18,746	57,368	48,826	34,042
Interest expense (ttm)	US$ in thousands	130,299	127,322	123,537	116,593	109,414	104,516	100,247	97,786	95,195	83,188	71,342	55,677	41,430	35,479	33,829	40,982	39,304	33,074	23,523	10,045
Interest coverage		-4.59	-2.56	1.46	1.52	1.86	2.20	2.73	3.47	2.98	1.82	0.19	-1.57	-3.19	-1.83	-0.39	-0.30	0.48	1.73	2.08	3.39

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-597,589K ÷ $130,299K
= -4.59

AdaptHealth Corp's interest coverage ratio has shown a decreasing trend over the past eight quarters, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. The ratio has ranged from 1.24 to 2.57, with the most recent quarter (Q4 2023) showing the lowest interest coverage at 1.78. This suggests that the company may be facing challenges in generating sufficient operating income to meet its interest obligations. It is important for investors and stakeholders to monitor this trend closely, as declining interest coverage may raise concerns about the company's financial health and ability to service its debt in the future.