Astrana Health Inc (ASTH)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,049 | 108,809 | 102,593 | 109,686 | 98,031 | 96,241 | 92,713 | 84,835 | 108,371 | 108,289 | 122,689 | 117,524 | 116,407 | 103,472 | 91,814 | 70,098 | 36,588 | 27,016 | 11,334 | 26,991 |
| Interest expense (ttm) | US$ in thousands | 20,418 | 16,102 | 13,252 | 11,895 | 10,117 | 7,921 | 6,400 | 4,945 | 4,944 | 5,394 | 5,835 | 7,334 | 8,154 | 9,499 | 11,390 | 9,752 | 7,390 | 4,733 | 1,537 | 887 |
| Interest coverage | 5.63 | 6.76 | 7.74 | 9.22 | 9.69 | 12.15 | 14.49 | 17.16 | 21.92 | 20.08 | 21.03 | 16.02 | 14.28 | 10.89 | 8.06 | 7.19 | 4.95 | 5.71 | 7.37 | 30.43 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $115,049K ÷ $20,418K
= 5.63
The interest coverage ratio for Astrana Health Inc has shown a fluctuating trend over the past several quarters. The ratio measures the company's ability to meet its interest payments on outstanding debt using its operating income.
From December 2019 to March 2020, the interest coverage ratio decreased from 30.43 to 4.95, indicating a significant decline in the company's ability to cover its interest expenses with its operating income. This substantial drop may raise concerns about the company's financial health and ability to service its debt obligations.
Subsequently, from June 2020 to September 2022, Astrana Health Inc demonstrated a consistent improvement in its interest coverage ratio, increasing from 7.37 to 14.49. This upward trend reflects a strengthening ability to cover interest payments from operating income, suggesting improved financial stability and debt-servicing capacity during this period.
Moreover, from September 2022 to March 2024, the interest coverage ratio continued to increase, reaching a peak of 21.92. This upward trajectory indicates a further enhancement in the company's ability to meet its interest obligations, reflecting stronger financial performance and better operational efficiency.
In conclusion, Astrana Health Inc's interest coverage ratio has displayed fluctuations over the analyzed period, signaling varying levels of financial strength and debt repayment capacity. While the company experienced a significant deterioration initially, it subsequently demonstrated a remarkable recovery and sustained improvement in its ability to cover interest payments. Continued monitoring of this ratio will be crucial to assess the company's ongoing financial health and debt management practices.
Peer comparison
Mar 31, 2024