Centene Corp (CNC)
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 | 4,959,000 | 2,930,000 | 2,627,000 | 2,478,000 | 3,501,000 |
| Interest expense | US$ in thousands | 702,000 | 725,000 | 665,000 | 665,000 | 728,000 |
| Interest coverage | 7.06 | 4.04 | 3.95 | 3.73 | 4.81 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,959,000K ÷ $702,000K
= 7.06
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. Looking at the data for Centene Corp's interest coverage over the past five years, we observe a fluctuating trend.
At the end of December 2020, the interest coverage ratio stood at 4.81, indicating that the company earned operating income 4.81 times the amount needed to cover its interest expenses. However, in the subsequent years, the ratio slightly decreased to 3.73 by the end of December 2021, and then increased to 3.95 by December 31, 2022.
By the end of December 2023, the interest coverage ratio showed a slight improvement to 4.04, suggesting the company's ability to cover interest payments with operating income continued to strengthen. Finally, as of December 31, 2024, the ratio notably improved to 7.06, indicating a significant increase in the company's ability to cover interest expenses with its operating income.
Overall, Centene Corp's interest coverage ratio fluctuated over the five-year period, but generally showed an improvement, with the latest figure reflecting a strong ability to meet its interest obligations from operating income.
Peer comparison
Dec 31, 2024