The Ensign Group Inc (ENSG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 358,304 | 280,398 | 298,049 | 261,780 | 226,082 |
| Interest expense | US$ in thousands | 8,286 | 8,087 | 8,931 | 6,849 | 9,362 |
| Interest coverage | 43.24 | 34.67 | 33.37 | 38.22 | 24.15 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $358,304K ÷ $8,286K
= 43.24
The interest coverage ratio for The Ensign Group Inc has shown a consistent and strong improvement over the years based on the data provided. Starting at 24.15 in December 31, 2020, the ratio has steadily increased to 38.22 by December 31, 2021, and further to 33.37 by December 31, 2022. The trend continued with ratios of 34.67 in December 31, 2023 and 43.24 in December 31, 2024. This indicates that the company's ability to cover its interest expenses from its operating income has been robust and strengthening, which is a positive sign of financial health and stability. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations, which can be appealing to investors and creditors.
Peer comparison
Dec 31, 2024