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