Concentra Group Holdings Parent, Inc. (CON)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 304,479 | 294,334 | 290,225 | 281,541 |
| Interest expense (ttm) | US$ in thousands | 69,899 | 123,560 | 111,000 | 112,819 |
| Interest coverage | 4.36 | 2.38 | 2.61 | 2.50 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $304,479K ÷ $69,899K
= 4.36
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest payment obligations. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
In the case of Concentra Group Holdings Parent, Inc., the interest coverage ratio has been relatively stable throughout the year 2024. The ratio was 2.50 as of March 31, 2024, showing that the company's EBIT was 2.50 times higher than its interest expenses for that period. By June 30, 2024, the interest coverage ratio slightly improved to 2.61, indicating a slightly healthier position in meeting interest payments. However, the ratio decreased to 2.38 by September 30, 2024, suggesting a slight decrease in the company's ability to cover its interest expenses.
The most significant change came by the end of the year, as of December 31, 2024, when the interest coverage ratio increased significantly to 4.36. This improvement indicates that Concentra Group Holdings Parent, Inc. experienced a substantial increase in its ability to cover its interest expenses with its EBIT.
Overall, while there were fluctuations in Concentra's interest coverage ratio throughout the year, the company showed an improved ability to meet its interest payment obligations by the end of 2024 compared to the beginning of the year. This trend suggests a strengthening financial position and better financial health for the company.
Peer comparison
Dec 31, 2024