CorVel Corp (CRVL)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 95,101 | 84,554 | 84,512 | 59,175 |
| Interest expense | US$ in thousands | — | — | 25,121 | 23,916 | 23,436 |
| Interest coverage | — | — | 3.37 | 3.53 | 2.52 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense. For CorVel Corp, the interest coverage ratio has shown some fluctuations over the years.
As of March 31, 2021, CorVel Corp's interest coverage ratio was 2.52, indicating that the company's EBIT was 2.52 times the size of its interest expense for that period. This suggests that the company had a moderate ability to cover its interest payments with operating income.
By March 31, 2022, the interest coverage ratio improved to 3.53, signaling a stronger ability to meet interest obligations from earnings. This increase could indicate improved operating performance or a decrease in interest expenses.
However, the ratio dipped slightly to 3.37 as of March 31, 2023, although it still remains at a healthy level overall. The consistent trend of the interest coverage ratio above 1 indicates that CorVel Corp is generating sufficient earnings to comfortably cover its interest payments.
Notably, there is no available data for the interest coverage ratio as of March 31, 2024 and March 31, 2025 in the provided information. It is important to continuously monitor this ratio in future periods to assess CorVel Corp's financial health and debt servicing capability.