GE HealthCare Technologies Inc. (GEHC)

Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. Looking at the data provided for GE HealthCare Technologies Inc., the interest coverage ratio has fluctuated over the years.

As of December 31, 2022, the interest coverage ratio stood at a healthy level of 46.70, indicating that the company's earnings before interest and taxes (EBIT) were 46.70 times higher than its interest expenses for that year. This strong interest coverage ratio suggests that the company had ample cash flow to easily cover its interest payments, reflecting a low financial risk.

However, the interest coverage ratio experienced a notable decline by the end of December 31, 2023, dropping to 3.95. This sharp decrease may raise concerns about the company's ability to comfortably meet its interest obligations, as its EBIT only covered its interest expenses nearly 4 times. A lower interest coverage ratio could indicate an increased risk of default on debt commitments.

By December 31, 2024, the interest coverage ratio improved to 5.20, showing a slight recovery from the previous year. While the ratio is higher compared to 2023, it remains lower than the level in 2022. It suggests that GE HealthCare Technologies Inc. was able to enhance its ability to cover interest payments, albeit the ratio still being lower than in 2022.

Overall, fluctuations in the interest coverage ratio of GE HealthCare Technologies Inc. indicate varying levels of financial health and risk over the analyzed period. Investors and creditors may pay attention to these changes to assess the company's ability to service debt and manage financial obligations effectively.

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Dec 31, 2024