Concentra Group Holdings Parent, Inc. (CON)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 301,087 | 287,104 | 256,537 | 307,419 |
| Interest expense | US$ in thousands | 69,694 | 114,039 | 32 | 32 |
| Interest coverage | 4.32 | 2.52 | 8,016.78 | 9,606.84 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $301,087K ÷ $69,694K
= 4.32
Concentra Group Holdings Parent, Inc.'s interest coverage has shown a decreasing trend over the years. As of December 31, 2021, the interest coverage was exceptionally high at 9,606.84, indicating that the company generated significantly more operating income than needed to cover its interest expenses. However, by December 31, 2023, the interest coverage had dropped substantially to 2.52, suggesting a potential inability to cover interest payments comfortably with operating income alone.
While the interest coverage improved slightly by December 31, 2024, reaching 4.32, it remains relatively low compared to earlier periods. This downward trend in interest coverage raises concerns about the company's ability to meet its debt obligations through its operational earnings. It is essential for Concentra Group Holdings Parent, Inc. to closely monitor and manage its interest coverage ratio to ensure sustainable financial health and avoid potential liquidity issues in the future.
Peer comparison
Dec 31, 2024