Astrana Health Inc (ASTH)
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 | 108,808 | 104,264 | 106,010 | 103,294 | 27,016 |
| Interest expense | US$ in thousands | 16,102 | 7,920 | 5,394 | 9,499 | 4,733 |
| Interest coverage | 6.76 | 13.16 | 19.65 | 10.87 | 5.71 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $108,808K ÷ $16,102K
= 6.76
The interest coverage ratio of Astrana Health Inc has shown fluctuating trends over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
In 2023, the interest coverage ratio was 6.76, indicating that the company generated 6.76 times the earnings needed to cover its interest expense. This ratio has decreased from the previous year, suggesting a potentially lower ability to cover interest expenses with operating income.
Compared to 2022 and 2021, where the interest coverage ratios were 13.16 and 19.65 respectively, the current ratio of 6.76 indicates a significant decline in the company's ability to cover interest expenses. However, it is worth noting that the ratio is still higher than the 2020 and 2019 levels, indicating an improvement in interest coverage over the longer term.
Overall, Astrana Health Inc's interest coverage ratio has shown variability over the years, and investors and creditors may need to further assess the company's financial health and ability to meet its debt obligations based on the latest ratio of 6.76.
Peer comparison
Dec 31, 2023