Amedisys Inc (AMED)
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 | 72,086 | 183,382 | 288,662 | 220,281 | 183,851 |
| Interest expense | US$ in thousands | 31,274 | 22,228 | 9,525 | 11,038 | 14,515 |
| Interest coverage | 2.30 | 8.25 | 30.31 | 19.96 | 12.67 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $72,086K ÷ $31,274K
= 2.30
Amedisys Inc.'s interest coverage ratio has shown fluctuations over the past five years. The ratio decreased from 25.70 in 2021 to 7.28 in 2023. Despite the decrease, the company's interest coverage ratio remains above 1, indicating that Amedisys has generated sufficient operating income to cover its interest expenses. The significant drop in the ratio from 2021 to 2023 may indicate a higher burden of interest expenses relative to operating income in 2023. It is essential for investors and creditors to monitor this trend to assess the company's ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Amedisys Inc
AMED
2.30
Adapthealth Corp
AHCO
-4.59
Addus HomeCare Corporation
ADUS
8.32
Chemed Corp
CHE
113.73
Option Care Health Inc
OPCH
8.00