GE HealthCare Technologies Inc. (GEHC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,625,000 | 2,513,000 | 2,454,000 | 2,416,000 | 2,435,000 | 2,523,000 |
| Interest expense (ttm) | US$ in thousands | 510,000 | 530,000 | 538,000 | 544,000 | 542,000 | 470,000 |
| Interest coverage | 5.15 | 4.74 | 4.56 | 4.44 | 4.49 | 5.37 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,625,000K ÷ $510,000K
= 5.15
The interest coverage ratio for GE HealthCare Technologies Inc. has been relatively stable over the past few quarters, ranging from 4.44 to 5.37. This indicates that the company is able to comfortably cover its interest expenses with its operating income. A higher interest coverage ratio is generally seen as favorable, as it suggests that the company has a strong ability to meet its interest obligations. However, it is important to monitor this ratio over time to ensure that the company continues to generate sufficient earnings to cover its interest expenses.
Peer comparison
Dec 31, 2024
Company name
Symbol
Interest coverage
GE HealthCare Technologies Inc.
GEHC
5.15
Hologic Inc
HOLX
8.09