Enhabit Inc. (EHAB)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -48,400 | -145,300 | -135,400 | -34,100 |
| Interest expense (ttm) | US$ in thousands | 43,200 | 39,600 | 34,900 | 24,700 |
| Interest coverage | -1.12 | -3.67 | -3.88 | -1.38 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-48,400K ÷ $43,200K
= -1.12
Interest coverage ratio is a financial metric used to assess a company's ability to meet its interest payments on debt obligations. A ratio below 1 indicates that the company does not have sufficient operating income to cover its interest expenses, which could be a concerning sign for creditors and investors. Enhabit Inc.'s interest coverage ratio has been consistently negative over the past four quarters, with the lowest ratio recorded in June 2023 at -3.88. This trend suggests that the company may be facing financial difficulties in generating enough income to cover its interest expenses. Further analysis and monitoring of Enhabit Inc.'s financial situation and debt management strategies are recommended to understand the root causes of the negative interest coverage ratios and assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023