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.
Peer comparison
Dec 31, 2023