DaVita HealthCare Partners Inc (DVA)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,090,483 | 1,915,030 | 1,876,091 | 1,774,984 | 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 |
| Interest expense (ttm) | US$ in thousands | 470,469 | 427,938 | 391,435 | 397,195 | 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 |
| Interest coverage | 4.44 | 4.48 | 4.79 | 4.47 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,090,483K ÷ $470,469K
= 4.44
DaVita HealthCare Partners Inc's interest coverage ratio has experienced fluctuations over the given periods, indicating changes in the company's ability to cover its interest expenses with its operating income. The interest coverage ratio ranged from a low of 2.91 in September 30, 2020, to a high of 7.73 in December 31, 2020. This suggests that the company had a relatively weaker ability to cover its interest expenses in September 30, 2020, but significantly improved by December 31, 2020.
Subsequently, the interest coverage ratio remained relatively stable, ranging between 5.43 and 6.54 from June 30, 2022, to September 30, 2021. However, the ratio began to decline from March 31, 2022, and continued to decrease in the following periods, reaching 3.42 by March 31, 2023.
Although there was a slight increase in the interest coverage ratio in the March 31, 2023 to December 31, 2024 periods, the ratio remained below the levels seen in the earlier years. The ratio ranged from 3.17 to 4.79 during this time frame, indicating that DaVita HealthCare Partners Inc's ability to cover its interest expenses slightly improved but remained below the peak levels observed in December 31, 2020.
Overall, fluctuations in the interest coverage ratio suggest varying levels of financial risk and operating performance for DaVita HealthCare Partners Inc over the analyzed periods, with the company showing both strengths and areas of improvement in managing its interest expenses relative to its operating income.
Peer comparison
Dec 31, 2024