Healthcare Services Group Inc (HCSG)
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 | -168,909 | -180,258 | -157,091 | -140,810 | -128,123 | -139,376 | -131,413 | -145,825 | -137,476 | -108,451 | -82,366 | -60,347 | -48,684 | -8,274 | -14,393 | -9,680 | -61,210 | -45,457 | -40,259 | -27,079 |
| Interest expense (ttm) | US$ in thousands | -3,740 | -4,563 | -1,632 | 728 | 2,988 | 2,121 | 1,651 | 1,536 | 1,385 | 1,329 | 1,314 | 1,364 | 1,374 | 1,942 | 2,368 | 2,771 | 3,459 | 6,402 | 9,485 | 12,525 |
| Interest coverage | — | — | — | -193.42 | -42.88 | -65.71 | -79.60 | -94.94 | -99.26 | -81.60 | -62.68 | -44.24 | -35.43 | -4.26 | -6.08 | -3.49 | -17.70 | -7.10 | -4.24 | -2.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-168,909K ÷ $-3,740K
= —
The interest coverage ratio of Healthcare Services Group, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio was 6.11, indicating that the company generated 6.11 times more operating income than the interest expenses it incurred during the quarter. This was a decrease from the previous quarter Q3 2023, where the ratio was 5.47.
Despite the slight decrease in Q4 2023, the interest coverage ratio has generally been at healthy levels over the past two years. The highest ratios were seen in Q2 and Q3 of 2022, reaching 27.22 and 26.33, respectively. These high ratios suggest that Healthcare Services Group, Inc. was well able to meet its interest obligations with its operating income during those quarters.
Overall, the trend in interest coverage ratios for Healthcare Services Group, Inc. indicates a generally strong ability to cover interest expenses with operating income, with some fluctuations in recent quarters. Further monitoring of the interest coverage ratio will be important to assess the company's ongoing financial health and ability to meet its debt obligations.