The Ensign Group Inc (ENSG)
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 | 367,523 | 299,900 | 294,526 | 291,534 | 280,398 | 326,714 | 317,250 | 309,804 | 298,049 | 286,243 | 277,246 | 266,530 | 261,780 | 251,317 | 241,480 | 232,739 | 226,082 | 209,434 | 189,920 | 170,970 |
| Interest expense (ttm) | US$ in thousands | 8,286 | 8,032 | 8,032 | 8,015 | 8,087 | 8,150 | 8,234 | 8,899 | 8,931 | 8,729 | 8,330 | 7,276 | 6,849 | 6,648 | 6,679 | 7,338 | 9,362 | 11,847 | 14,007 | 15,655 |
| Interest coverage | 44.35 | 37.34 | 36.67 | 36.37 | 34.67 | 40.09 | 38.53 | 34.81 | 33.37 | 32.79 | 33.28 | 36.63 | 38.22 | 37.80 | 36.16 | 31.72 | 24.15 | 17.68 | 13.56 | 10.92 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $367,523K ÷ $8,286K
= 44.35
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a greater ability to meet interest obligations.
Based on the provided data for The Ensign Group Inc, we can observe a generally positive trend in the interest coverage ratio over the periods from March 31, 2020, to December 31, 2024. The ratio has increased steadily from 10.92 on March 31, 2020, to 44.35 on December 31, 2024. This indicates a consistent improvement in the company's ability to cover its interest expenses over time.
The company's interest coverage ratio has shown strong growth, reflecting a healthier financial position and a reduced risk of default on interest payments. This upward trend suggests that The Ensign Group Inc has been effectively managing its debt obligations and generating sufficient earnings to comfortably cover its interest costs.
Overall, the increasing trend in The Ensign Group Inc's interest coverage ratio signifies a positive financial performance and indicates a strengthened ability to manage its debt burden successfully.
Peer comparison
Dec 31, 2024