AMN Healthcare Services Inc (AMN)
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 | 77,627 | 111,797 | 198,723 | 251,329 | 337,054 | 422,151 | 470,317 | 562,900 | 642,283 | 691,609 | 661,123 | 577,791 | 477,098 | 337,604 | 280,005 | 219,226 | 150,609 | 168,478 | 161,210 | 167,606 |
| Interest expense (ttm) | US$ in thousands | 69,901 | 60,251 | 57,348 | 53,808 | 47,439 | 45,743 | 43,163 | 41,068 | 40,398 | 38,429 | 34,691 | 34,722 | 34,077 | 46,959 | 54,300 | 55,632 | 57,742 | 43,920 | 39,186 | 33,808 |
| Interest coverage | 1.11 | 1.86 | 3.47 | 4.67 | 7.10 | 9.23 | 10.90 | 13.71 | 15.90 | 18.00 | 19.06 | 16.64 | 14.00 | 7.19 | 5.16 | 3.94 | 2.61 | 3.84 | 4.11 | 4.96 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $77,627K ÷ $69,901K
= 1.11
AMN Healthcare Services Inc's interest coverage ratio has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt.
From March 31, 2020, to December 31, 2020, the interest coverage ratio hovered around 2.61 to 4.96, indicating a moderate capacity to cover interest expenses with operating income.
However, there was a significant improvement in the interest coverage ratio from March 31, 2021, onwards, reaching its peak at 19.06 on June 30, 2022. This substantial increase suggests that the company's operating income was more than sufficient to cover its interest expenses and signals strong financial health during this period.
After reaching the peak, the interest coverage ratio started to decline gradually, dropping to 1.11 by December 31, 2024. This decreasing trend may raise concerns about the company's ability to cover interest payments with its operating income. It is important to closely monitor this ratio in future periods to assess the company's financial stability and debt servicing capabilities.
Peer comparison
Dec 31, 2024