HCA Holdings Inc (HCA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,795,000 | 9,130,000 | 10,634,000 | 6,381,000 | 6,428,000 |
| Interest expense | US$ in thousands | 1,938,000 | 1,741,000 | 1,566,000 | 1,584,000 | 1,824,000 |
| Interest coverage | 4.54 | 5.24 | 6.79 | 4.03 | 3.52 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,795,000K ÷ $1,938,000K
= 4.54
The interest coverage ratio for HCA Healthcare Inc has shown a fluctuating trend over the past five years. The ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In 2023, the interest coverage ratio was 4.98, which means that the company's EBIT was nearly five times its annual interest obligations. This ratio decreased compared to 2022 but remained at a relatively healthy level.
The trend over the past five years saw fluctuations, with the highest interest coverage ratio of 6.25 in 2021 and the lowest of 3.98 in 2019. This indicates some variability in the company's ability to cover its interest expenses over the years.
Overall, the interest coverage ratios suggest that HCA Healthcare Inc has generally maintained a sufficient buffer to meet its interest payments from its operating income. However, the fluctuations in the ratio over time should be monitored to ensure the company's ability to handle its debt obligations effectively.
Peer comparison
Dec 31, 2023