Mednax Inc (MD)

Interest coverage is a financial ratio that measures a company's ability to cover its interest expenses with its operating income. In the case of Mednax Inc, the interest coverage ratio has varied over the years.

As of December 31, 2020, Mednax Inc had an interest coverage ratio of 1.56, indicating that the company was generating just enough operating income to cover its interest expenses.

By December 31, 2021, the interest coverage ratio improved significantly to 3.17, suggesting that Mednax Inc's operating income had increased relative to its interest expenses, signaling a stronger financial position.

The trend continued positively as of December 31, 2022, with an interest coverage ratio of 5.04, demonstrating a healthy ability to cover interest costs with operating income.

However, the interest coverage ratio declined dramatically by December 31, 2023, dropping to -0.15, which implies that Mednax Inc's operating income was insufficient to cover its interest expenses. This may raise concerns about the company's financial health and ability to meet its debt obligations.

The situation worsened by December 31, 2024, with an interest coverage ratio of -1.49, further underscoring the challenges Mednax Inc was facing in meeting its interest payments.

Overall, fluctuations in Mednax Inc's interest coverage ratio indicate varying degrees of financial stability and solvency over the years, with a sharp decline in recent years raising red flags regarding the company's ability to manage its debt effectively.

Peer comparison

Dec 31, 2024