Cross Country Healthcare Inc (CCRN)

Interest coverage

		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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	110,988	147,298	179,331	223,885	270,716	296,967	271,587	209,683	140,074	69,085	41,706	11,815	-10,260	-15,591	-16,670	-18,362	-20,675	-44,928	-40,836	-21,203
Interest expense (ttm)	US$ in thousands	8,094	11,023	13,852	14,560	14,391	13,693	12,377	9,716	6,866	4,720	3,146	2,694	2,890	3,267	4,057	4,751	5,306	5,687	5,801	5,810
Interest coverage		13.71	13.36	12.95	15.38	18.81	21.69	21.94	21.58	20.40	14.64	13.26	4.39	-3.55	-4.77	-4.11	-3.86	-3.90	-7.90	-7.04	-3.65

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $110,988K ÷ $8,094K
= 13.71

Based on the data provided for Cross Country Healthcares, Inc., the interest coverage ratio has shown a declining trend over the past eight quarters. The company's interest coverage ratio has decreased from 22.34 in Q3 2022 to 14.47 in Q4 2023. This downward trend indicates that the company's ability to cover its interest expenses with its earnings has weakened over time.

While Cross Country Healthcares, Inc. still maintains a relatively healthy interest coverage ratio above 1, indicating that it is able to meet its interest obligations, the decreasing trend raises some concerns about the company's financial health and ability to service its debt obligations in the long run. It may suggest that the company's earnings are not keeping pace with its interest expenses, which could potentially lead to liquidity issues or financial distress in the future if not addressed.

It is important for investors and stakeholders to monitor this trend closely and assess the company's strategies to improve its interest coverage ratio, such as increasing profitability, reducing debt levels, or optimizing its capital structure to ensure long-term financial stability and sustainability.