DaVita HealthCare Partners Inc (DVA)

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 1,602,784 1,469,127 1,284,975 1,312,399 1,339,062 1,472,225 1,635,315 1,693,076 1,797,370 1,789,626 1,752,418 1,671,862 1,694,636 1,775,553 1,716,220 1,768,186 1,643,317 1,568,637 1,479,339 1,455,645
Interest expense (ttm) US$ in thousands 398,551 403,323 404,923 384,002 357,019 328,144 301,293 292,031 285,254 273,636 274,465 282,522 219,111 609,242 539,387 461,721 461,893 139,593 261,717 377,694
Interest coverage 4.02 3.64 3.17 3.42 3.75 4.49 5.43 5.80 6.30 6.54 6.38 5.92 7.73 2.91 3.18 3.83 3.56 11.24 5.65 3.85

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,602,784K ÷ $398,551K
= 4.02

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a more comfortable position to cover interest expenses. DaVita Inc's interest coverage ratio has been fluctuating over the past 8 quarters, ranging from 3.17 to 5.80.

In Q4 2023, DaVita Inc's interest coverage ratio was 4.09, showing that the company generated operating income 4.09 times higher than its interest expenses for that quarter. This indicates a healthy ability to meet interest obligations.

Comparing to the previous quarters, the interest coverage ratio has shown a slight decrease from Q3 2023 (3.64) to Q4 2023, but still within a reasonable range. However, the current ratio is lower than the highest point in the past year, which was 5.80 in Q1 2022, suggesting a potential trend to monitor.

Overall, DaVita Inc has maintained a generally stable interest coverage ratio over the past quarters, indicating a consistent ability to cover interest expenses with operating income. Further monitoring of this ratio is recommended to ensure the company's financial stability and ability to meet its interest obligations in the future.


Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
DaVita HealthCare Partners Inc
DVA
4.02
Progyny Inc
PGNY
30.69
Sotera Health Co
SHC
10.79