Astrana Health Inc (ASTH)
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 | 113,915 | 114,087 | 120,213 | 114,852 | 105,941 | 112,622 | 114,513 | 97,873 | 94,536 | 60,130 | 11,907 | 79,727 | 83,143 | 130,633 | 173,812 | 103,394 | 88,087 | 65,763 | 44,365 | 43,665 |
| Interest expense (ttm) | US$ in thousands | 33,097 | 30,450 | 25,373 | 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 |
| Interest coverage | 3.44 | 3.75 | 4.74 | 5.63 | 6.58 | 8.50 | 9.63 | 9.67 | 11.93 | 9.40 | 2.41 | 16.13 | 15.41 | 22.39 | 23.70 | 12.68 | 9.27 | 5.77 | 4.55 | 5.91 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $113,915K ÷ $33,097K
= 3.44
The interest coverage ratio measures a company's ability to meet its interest obligations on its debt. Astrana Health Inc's interest coverage has fluctuated over the past few years, indicating variations in its ability to cover interest expenses.
From March 31, 2020, to June 30, 2021, the interest coverage ratio showed a positive trend, increasing steadily from 5.91 to 23.70. This significant improvement suggests that Astrana Health Inc was generating sufficient earnings to comfortably cover its interest payments during this period.
However, the ratio dropped sharply to 2.41 on June 30, 2022, indicating a potential strain on the company's ability to meet its interest obligations. This drastic decrease may raise concerns about the company's financial health and its ability to service its debt effectively.
Subsequently, Astrana Health Inc improved its interest coverage ratio to 11.93 by December 31, 2022, but it declined again in the following quarters, ranging between 6.58 and 3.44 by December 31, 2024. These fluctuations suggest a potential inconsistency in the company's earnings relative to its interest expenses.
Overall, Astrana Health Inc's interest coverage ratio has shown significant volatility over the analyzed period, with both positive and negative trends. It is essential for stakeholders to closely monitor this ratio to assess the company's financial stability and its ability to manage its debt effectively in the long term.
Peer comparison
Dec 31, 2024