Concentra Group Holdings Parent, Inc. (CON)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 290,863 | 286,754 | 281,541 |
| Interest expense (ttm) | US$ in thousands | 123,560 | 111,000 | 112,819 |
| Interest coverage | 2.35 | 2.58 | 2.50 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $290,863K ÷ $123,560K
= 2.35
Concentra Group Holdings Parent, Inc.'s interest coverage ratio provides insight into the company's ability to meet its interest obligations with its operating income. The trend of the interest coverage ratio over the past three quarters shows a consistent level of coverage, with ratios of 2.35, 2.58, and 2.50 for September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
A ratio above 1 indicates that the company is generating sufficient operating income to cover its interest expenses. In this case, Concentra Group Holdings Parent, Inc. has maintained a healthy interest coverage ratio above 2 in each period, which suggests that the company's profitability is adequate to service its interest payments.
The slight decrease in the interest coverage ratio from June to September 2024 may indicate a small decline in operating income compared to interest expenses. However, the ratios are still comfortably above 1, indicating that the company has a cushion to meet its interest obligations.
Overall, based on the data provided, Concentra Group Holdings Parent, Inc.'s interest coverage appears to be stable and sufficient to address its interest payment requirements.
Peer comparison
Sep 30, 2024