Cencora Inc. (COR)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,340,730 | 2,366,380 | 2,354,200 | -5,135,350 | 1,111,920 |
| Interest expense | US$ in thousands | 8,500 | 11,900 | 9,700 | 6,400 | 7,100 |
| Interest coverage | 275.38 | 198.86 | 242.70 | -802.40 | 156.61 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,340,730K ÷ $8,500K
= 275.38
The interest coverage ratio of Cencora Inc. has exhibited a declining trend from 2016 to 2018, with a notable increase in 2021. This ratio indicates the company's ability to fulfill its interest payment obligations. A higher ratio is generally indicative of a healthier financial position and signifies that the company is generating ample operating income to cover its interest expenses. Cencora's interest coverage has decreased in recent years, which could potentially raise concerns about its ability to meet interest payments from its operating income. This downturn may be attributed to a variety of factors, such as changes in the company's profit margins, higher interest expenses, or a shift in its capital structure. It is important for stakeholders to closely monitor these fluctuations and assess their potential impact on the company's overall financial health and stability.
Peer comparison
Sep 30, 2023