HCA Holdings Inc (HCA)
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 | 8,795,000 | 9,403,000 | 9,426,000 | 9,321,000 | 9,130,000 | 8,733,000 | 10,145,000 | 10,464,000 | 10,634,000 | 10,028,000 | 7,938,000 | 7,460,000 | 6,381,000 | 6,037,000 | 6,050,000 | 5,770,000 | 6,428,000 | 6,339,000 | 6,438,000 | 6,435,000 |
| Interest expense (ttm) | US$ in thousands | 1,938,000 | 1,900,000 | 1,863,000 | 1,812,000 | 1,741,000 | 1,686,000 | 1,638,000 | 1,590,000 | 1,566,000 | 1,551,000 | 1,538,000 | 1,540,000 | 1,584,000 | 1,639,000 | 1,702,000 | 1,791,000 | 1,824,000 | 1,832,000 | 1,826,000 | 1,785,000 |
| Interest coverage | 4.54 | 4.95 | 5.06 | 5.14 | 5.24 | 5.18 | 6.19 | 6.58 | 6.79 | 6.47 | 5.16 | 4.84 | 4.03 | 3.68 | 3.55 | 3.22 | 3.52 | 3.46 | 3.53 | 3.61 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,795,000K ÷ $1,938,000K
= 4.54
The interest coverage ratio for HCA Healthcare Inc has shown a gradual decline over the past eight quarters, from 6.07 in Q1 2022 to 4.98 in Q4 2023. This ratio measures the company's ability to meet its interest obligations from its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Despite the decreasing trend, the interest coverage ratio has remained above 4 in all quarters, which suggests that HCA Healthcare Inc has been able to comfortably cover its interest payments with its operating income. However, it is important to monitor this ratio closely as a sustained decline could indicate potential financial distress or risk of default.
Overall, HCA Healthcare Inc's interest coverage ratio indicates a reasonable ability to meet its interest obligations, but investors and stakeholders should pay attention to any further changes in this ratio to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023