CorVel Corp (CRVL)
Interest coverage
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 95,187 | 95,184 | 95,041 | 88,873 | 84,645 | 88,313 | 83,779 | 85,239 | 84,610 | 77,706 | 73,982 | 68,923 | 59,254 | 54,700 | 52,971 | 54,252 | 60,512 | 78,299 | 79,597 | 79,743 |
| Interest expense (ttm) | US$ in thousands | 86 | 87 | 89 | 90 | 92 | 94 | 95 | 97 | 98 | 100 | 102 | 103 | 78 | 52 | 26 | 0 | 0 | 0 | 0 | 0 |
| Interest coverage | 1,106.83 | 1,094.07 | 1,067.88 | 987.48 | 920.05 | 939.50 | 881.88 | 878.75 | 863.37 | 777.06 | 725.31 | 669.16 | 759.67 | 1,051.92 | 2,037.35 | — | — | — | — | — |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $95,187K ÷ $86K
= 1,106.83
The interest coverage ratio for CorVel Corp has shown a generally positive trend over the past several quarters. The ratio has been consistently above 1, indicating that the company's operating income is sufficient to cover its interest expenses, with a significant buffer on top.
In the most recent quarter, as of March 31, 2024, the interest coverage ratio stood at an impressive 1,106.83, signifying a robust ability to meet its interest obligations. This level indicates a very strong financial position and suggests that CorVel Corp has a healthy cash flow and profitability to support its debt servicing requirements.
Overall, the consistently high and improving interest coverage ratios reflect CorVel Corp's solid financial health and ability to manage its debt effectively, providing investors and stakeholders with confidence in the company's financial stability.