The Ensign Group Inc (ENSG)
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 | 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 | 150,150 | 134,275 | 128,388 | 123,284 |
| Interest expense (ttm) | US$ in thousands | 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 | 15,662 | 15,224 | 15,313 | 15,241 |
| Interest coverage | 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 | 9.59 | 8.82 | 8.38 | 8.09 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $280,398K ÷ $8,087K
= 34.67
The interest coverage ratio for Ensign Group Inc has shown a consistent and healthy trend over the past eight quarters. It has generally remained above 25, indicating that the company is generating significantly more operating income relative to its interest expense. This demonstrates that Ensign Group Inc has a strong ability to meet its interest obligations using its operating earnings.
Moreover, the interest coverage ratio has exhibited stability and resilience, with only minor fluctuations observed from quarter to quarter. This suggests that the company's financial position is robust and well-managed, allowing it to consistently cover its interest payments comfortably. The recent ratios exceeding 30 in the last four quarters indicate that Ensign Group Inc has a solid cushion to handle its interest expenses, further strengthening its financial stability.
Peer comparison
Dec 31, 2023