HealthStream Inc (HSTM)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	21,288	20,855	19,220	18,817	16,018	14,841	12,360	11,305	12,449	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,019	18,633	16,597
Interest expense (ttm)	US$ in thousands	0	250	250	250	500	441	2,984	3,663	3,689	3,498	955	276	0	0	0	0	0	25	51	81
Interest coverage		—	83.42	76.88	75.27	32.04	33.65	4.14	3.09	3.37	2.55	8.70	31.85	—	—	—	—	—	720.76	365.35	204.90

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $21,288K ÷ $0K
= —

Interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates that the company is more capable of meeting its interest payments.

Based on the provided data for HealthStream Inc, the interest coverage ratio has fluctuated over the period. It stood at 204.90 as of March 31, 2020, indicating a strong ability to cover interest expenses. The ratio increased significantly to 365.35 by June 30, 2020, and further improved to 720.76 by September 30, 2020, reflecting a robust financial position.

However, the interest coverage ratio data becomes unavailable from December 31, 2020, up to June 30, 2021. This lack of data could impact the ability to assess the company's financial health for that period.

As of March 31, 2022, the interest coverage ratio dropped to 31.85, signaling a decline in the company's ability to cover interest expenses. Subsequently, the ratio continued to decrease to 2.55 by September 30, 2022, which suggests a potential strain on the company's financial resources to meet interest obligations.

HealthStream Inc's interest coverage ratio slightly recovered to 75.27 as of March 31, 2024, but remained relatively stable around this level through June 30, 2024 and September 30, 2024.

Overall, the trend in HealthStream Inc's interest coverage ratio shows fluctuations in the company's ability to cover interest expenses, with periods of strong coverage followed by declines and some fluctuations. It is important for stakeholders to monitor this ratio closely to assess the company's financial health and risk management.