HCA Holdings Inc (HCA)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 10,547,000 | 9,644,000 | 10,321,000 | 11,399,000 | 7,014,000 |
| Interest expense | US$ in thousands | 2,061,000 | 1,938,000 | 1,741,000 | 1,566,000 | 1,584,000 |
| Interest coverage | 5.12 | 4.98 | 5.93 | 7.28 | 4.43 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $10,547,000K ÷ $2,061,000K
= 5.12
Based on the provided data, the interest coverage ratio of HCA Holdings Inc has shown some fluctuations over the years. In December 31, 2020, the interest coverage ratio was 4.43, indicating that the company generated earnings 4.43 times greater than its interest expenses.
By December 31, 2021, the interest coverage ratio improved to 7.28, suggesting a stronger ability to cover interest payments with operating income. This positive trend continued into December 31, 2022, with an interest coverage ratio of 5.93, demonstrating the company's stable financial position.
However, there was a slight decline in the interest coverage ratio by December 31, 2023, where it fell to 4.98. This could indicate a potential strain on the company's ability to cover interest expenses with operating earnings.
In the most recent year, December 31, 2024, the interest coverage ratio improved slightly to 5.12, but it is still important for the company to maintain a consistent and healthy interest coverage ratio to ensure financial stability and meet its debt obligations comfortably.
Peer comparison
Dec 31, 2024