HealthStream Inc (HSTM)
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 | 21,287 | 18,511 | 12,449 | 8,055 | 15,818 |
| Interest expense | US$ in thousands | — | — | 3,136 | 289 | 2,005 |
| Interest coverage | — | — | 3.97 | 27.87 | 7.89 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $21,287K ÷ $—K
= —
HealthStream Inc's interest coverage ratio has shown some fluctuations over the years. In 2020, the interest coverage ratio was 7.89, indicating that the company generated sufficient earnings before interest and taxes to cover its interest expense approximately 7.89 times. This ratio improved significantly to 27.87 in 2021, suggesting a stronger ability to meet interest obligations with operating profits.
However, there was a substantial decline in the interest coverage ratio to 3.97 in 2022, which may raise concerns about the company's ability to cover interest payments comfortably. It's important to note that an interest coverage ratio below 1 indicates the company is not generating enough operating income to cover interest expenses.
The lack of data for 2023 and 2024 makes it challenging to assess the trend further. It would be crucial for HealthStream Inc to monitor and potentially improve its interest coverage ratio to ensure financial stability and meet debt obligations in the future.
Peer comparison
Dec 31, 2024