Astrana Health Inc (ASTH)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 113,915 | 105,940 | 94,536 | 83,142 | 187,926 |
| Interest expense | US$ in thousands | 33,097 | 16,102 | 7,920 | 5,394 | 2,526 |
| Interest coverage | 3.44 | 6.58 | 11.94 | 15.41 | 74.40 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $113,915K ÷ $33,097K
= 3.44
Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. Astrana Health Inc's interest coverage has shown a gradual decline over the years. In 2020, the interest coverage was strong at 74.40, indicating that the company's operating income was 74.40 times its interest expenses, reflecting a healthy financial position.
However, there has been a significant decrease in interest coverage since then. By the end of 2024, Astrana Health's interest coverage had decreased to 3.44. This suggests that the company's operating income only covered its interest expenses 3.44 times, which may raise concerns about its ability to meet its interest obligations in the future.
The declining trend in interest coverage indicates a potential financial risk for Astrana Health Inc, highlighting the need for the company to closely monitor its debt levels and operating performance to ensure sustainable financial stability.
Peer comparison
Dec 31, 2024