Elevance Health Inc (ELV)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,741,000 | 8,626,000 | 8,732,000 | 7,022,000 | 6,731,000 |
| Interest expense | US$ in thousands | 1,030,000 | 851,000 | 798,000 | 784,000 | 746,000 |
| Interest coverage | 8.49 | 10.14 | 10.94 | 8.96 | 9.02 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,741,000K ÷ $1,030,000K
= 8.49
The interest coverage ratio for Elevance Health Inc has shown a decreasing trend from 2019 to 2023. This ratio indicates the company's ability to meet its interest obligations with its operating earnings. A higher interest coverage ratio is generally considered favorable as it implies the company has more than enough operating income to cover its interest expenses.
In 2023, the interest coverage ratio stands at 8.49, indicating that Elevance Health Inc generated operating earnings 8.49 times greater than its interest expense for the year. While this ratio has declined compared to the previous years, it still remains at a relatively healthy level, suggesting the company's ability to manage its interest payments.
It is important for investors and creditors to monitor changes in the interest coverage ratio over time, as a declining trend may indicate a potential strain on the company's financial health and ability to meet its debt obligations. Further analysis of the company's financial performance and debt structure may be warranted to assess the overall financial stability of Elevance Health Inc.
Peer comparison
Dec 31, 2023