Humana Inc (HUM)

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	3,818,000	4,323,000	4,525,000	4,374,000	3,969,000	3,960,000	4,295,000	3,921,000	3,744,000	3,338,000	3,464,000	5,301,000	4,957,000	5,986,000	5,072,000	3,686,000	3,712,000	3,560,000	3,572,000	2,343,000
Interest expense (ttm)	US$ in thousands	493,000	455,000	443,000	424,000	401,000	384,000	370,000	348,000	326,000	307,000	294,000	291,000	283,000	269,000	256,000	240,000	242,000	243,000	234,000	227,000
Interest coverage		7.74	9.50	10.21	10.32	9.90	10.31	11.61	11.27	11.48	10.87	11.78	18.22	17.52	22.25	19.81	15.36	15.34	14.65	15.26	10.32

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,818,000K ÷ $493,000K
= 7.74

Humana Inc.'s interest coverage ratio has remained relatively stable and consistently strong over the past eight quarters. The ratio has ranged from 8.01 to 9.98, indicating that the company's operating profits are more than sufficient to cover its interest expenses. This implies that Humana has a strong ability to meet its interest obligations and suggests a low risk of financial distress due to an inability to cover interest payments. Overall, the company's interest coverage ratio demonstrates a healthy financial position and effective management of its debt obligations.