Adapthealth Corp (AHCO)
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 | 250,149 | -86,635 | -606,470 | -606,589 | -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 |
| Interest expense (ttm) | US$ in thousands | 124,700 | 37,733 | 68,521 | 130,816 | 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 |
| Interest coverage | 2.01 | -2.30 | -8.85 | -4.64 | -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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $250,149K ÷ $124,700K
= 2.01
Adapthealth Corp's interest coverage ratio, which indicates the company's ability to meet its interest obligations, has shown significant fluctuations over the periods provided. A negative interest coverage ratio suggests that the company is not generating enough operating income to cover its interest expenses.
From March 2020 to December 2021, Adapthealth Corp experienced consistently low and negative interest coverage ratios, indicating potential financial stress and the inability to cover interest payments. However, from March 2022 onwards, the interest coverage ratio started to improve, indicating a better ability to meet interest obligations.
The company's interest coverage ratio turned positive in June 2021 and continued to increase through December 2022, reaching a peak of 3.47. This upward trend suggests a better financial position and an increased ability to cover interest expenses.
However, the interest coverage ratio declined in the following periods, dropping to negative values in September 2023 and December 2023. The company faced challenges potentially related to declining operating income or increasing interest expenses during these periods.
By the end of December 2024, the interest coverage ratio improved to 2.01, showing a partial recovery from the significant decline observed in mid-2024. Overall, Adapthealth Corp's interest coverage ratio has displayed fluctuations, with periods of financial strain followed by improvements in the company's ability to meet its interest obligations. Continued monitoring of this ratio is recommended to assess the company's ongoing financial health.
Peer comparison
Dec 31, 2024