Mednax Inc (MD)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -6,284 | 124,836 | 226,927 | -669,278 | -1,362,200 |
| Interest expense | US$ in thousands | 42,075 | 39,695 | 68,722 | 110,482 | 118,928 |
| Interest coverage | -0.15 | 3.14 | 3.30 | -6.06 | -11.45 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-6,284K ÷ $42,075K
= -0.15
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt using its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Analyzing Pediatrix Medical Group Inc's interest coverage over the past five years, we observe fluctuations in the ratio:
- In 2023, the interest coverage ratio was 3.80, indicating that the company generated operating income 3.80 times larger than its interest expenses. This suggests a moderate ability to cover interest payments.
- This is a decrease from 5.08 in 2022, where the company had a stronger ability to cover its interest obligations.
- The ratio of 3.20 in 2021 was slightly lower than the previous year, showing a modest decline in interest coverage.
- In 2020, the interest coverage ratio was 1.57, indicating a significant decrease in the company's ability to service its interest payments.
- However, in 2019, the ratio improved to 3.49, reflecting a better ability to cover interest expenses compared to the previous year.
Overall, Pediatrix Medical Group Inc's interest coverage has shown variability in recent years. Investors and creditors should monitor this ratio closely to assess the company's ability to meet its interest obligations and manage its debt effectively.
Peer comparison
Dec 31, 2023