Cencora Inc. (COR)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,530,463 | 2,340,731 | 2,318,309 | 2,135,478 | 2,355,116 | 2,366,378 | 2,473,754 | 2,607,184 | 2,451,374 | 2,354,197 | -4,320,838 | -4,536,734 | -4,851,566 | -5,135,357 | 1,157,624 | 1,159,487 | 897,537 | 1,111,923 | 1,086,179 | 1,068,680 |
| Interest expense (ttm) | US$ in thousands | 241,531 | 228,931 | 219,512 | 214,510 | 205,773 | 216,389 | 219,462 | 177,622 | 133,386 | 87,659 | 43,419 | 41,940 | 40,958 | 40,000 | 39,729 | 39,641 | 38,374 | 35,505 | 34,853 | 34,305 |
| Interest coverage | 10.48 | 10.22 | 10.56 | 9.96 | 11.45 | 10.94 | 11.27 | 14.68 | 18.38 | 26.86 | -99.51 | -108.17 | -118.45 | -128.38 | 29.14 | 29.25 | 23.39 | 31.32 | 31.16 | 31.15 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,530,463K ÷ $241,531K
= 10.48
The interest coverage ratio measures a company's ability to make interest payments on its debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. A consistent interest coverage ratio above 1 indicates that the company is generating enough earnings to cover its interest expenses.
Based on the data provided, Cencora Inc.'s interest coverage has been consistently strong, with the ratio ranging from 11.73 to 14.58 over the last eight quarters. This suggests that the company has consistently generated sufficient earnings to comfortably cover its interest obligations. The slight fluctuations in the ratio indicate that the company's ability to meet its interest payments has been stable and reliable.
Overall, the trend in Cencora Inc.'s interest coverage ratio reflects a financially healthy position with a consistent ability to meet its interest expenses. This indicates that the company is managing its debt effectively and has a strong ability to service its financial obligations.
Peer comparison
Dec 31, 2023