CVS Health Corp (CVS)
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 | 13,807,000 | 13,909,000 | 6,316,000 | 7,775,000 | 7,899,000 | 6,591,000 | 13,234,000 | 12,895,000 | 12,935,000 | 12,639,000 | 12,423,000 | 12,774,000 | 12,655,000 | 13,834,000 | 14,173,000 | 12,827,000 | 12,035,000 | 9,802,000 | 9,494,000 | 4,749,000 |
| Interest expense (ttm) | US$ in thousands | 2,658,000 | 2,520,000 | 2,393,000 | 2,290,000 | 2,287,000 | 2,343,000 | 2,379,000 | 2,432,000 | 2,503,000 | 2,573,000 | 2,702,000 | 2,831,000 | 2,907,000 | 2,963,000 | 2,979,000 | 2,986,000 | 3,035,000 | 3,034,000 | 2,961,000 | 2,878,000 |
| Interest coverage | 5.19 | 5.52 | 2.64 | 3.40 | 3.45 | 2.81 | 5.56 | 5.30 | 5.17 | 4.91 | 4.60 | 4.51 | 4.35 | 4.67 | 4.76 | 4.30 | 3.97 | 3.23 | 3.21 | 1.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,807,000K ÷ $2,658,000K
= 5.19
CVS Health Corp's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 5.49 to 7.16. This ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio demonstrates a stronger ability to cover interest expenses from operating earnings. The consistently high values of the interest coverage ratio suggest that CVS Health Corp has been generating sufficient operating income to comfortably cover its interest expenses, indicating a favorable financial position in terms of debt management and solvency. This stable and relatively high interest coverage ratio reflects sound financial health and indicates a lower risk of default on debt obligations for the company.
Peer comparison
Dec 31, 2023