Cross Country Healthcare Inc (CCRN)
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 | 110,988 | 270,716 | 140,074 | -10,260 | -20,675 |
| Interest expense | US$ in thousands | 8,094 | 14,391 | 6,866 | 2,890 | 5,306 |
| Interest coverage | 13.71 | 18.81 | 20.40 | -3.55 | -3.90 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $110,988K ÷ $8,094K
= 13.71
The interest coverage ratio for Cross Country Healthcares, Inc. has shown a positive trend over the past five years, indicating the company's improving ability to cover its interest expenses with its operating income.
In 2019, the interest coverage ratio was notably low at 1.12, suggesting that the company's operating income was only sufficient to cover its interest expenses slightly over once. However, there has been a significant improvement since then, with the ratio increasing to 4.57 in 2020, 21.13 in 2021, 19.55 in 2022, and further reaching 14.47 in 2023.
The steady increase in the interest coverage ratio reflects Cross Country Healthcares, Inc.'s enhanced capacity to service its debt obligations with its earnings. This positive trajectory indicates a strengthening financial position and reduced financial risk for the company, as higher interest coverage ratios are generally perceived more favorably by investors and creditors.
Peer comparison
Dec 31, 2023