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.
Peer comparison
Dec 31, 2023