Mednax Inc (MD)
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 | -54,649 | -226,456 | -221,545 | -15,627 | -9,958 | 174,425 | 182,517 | 189,512 | 142,943 | 158,392 | 173,053 | 170,228 | 217,738 | 191,935 | 198,898 | 187,906 | 170,708 | 193,932 | 185,278 | 200,168 |
| Interest expense (ttm) | US$ in thousands | 40,743 | 41,114 | 41,362 | 42,284 | 42,075 | 41,946 | 41,088 | 38,267 | 39,695 | 46,346 | 54,425 | 62,895 | 68,722 | 79,421 | 89,076 | 100,462 | 110,425 | 110,800 | 113,451 | 116,266 |
| Interest coverage | -1.34 | -5.51 | -5.36 | -0.37 | -0.24 | 4.16 | 4.44 | 4.95 | 3.60 | 3.42 | 3.18 | 2.71 | 3.17 | 2.42 | 2.23 | 1.87 | 1.55 | 1.75 | 1.63 | 1.72 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-54,649K ÷ $40,743K
= -1.34
The interest coverage ratio of Mednax Inc has exhibited fluctuating trends over the period from March 31, 2020, to December 31, 2024. The ratio started at 1.72 on March 31, 2020, and demonstrated a slight decrease to 1.63 by June 30, 2020. Subsequently, there was an improvement as the ratio increased to 1.87 on March 31, 2021, and showed further positive momentum, reaching 3.60 by December 31, 2022.
However, the interest coverage ratio experienced a significant decline in the following quarters, dropping to negative values. Notably, the ratio fell sharply to -5.51 on September 30, 2024, and recorded -1.34 on December 31, 2024. These negative values suggest that the company's operating income is insufficient to cover its interest expenses during these periods.
Overall, the trend in Mednax Inc's interest coverage indicates periods of both strength and weakness in its ability to cover interest expenses. It will be essential for the company to closely monitor and manage its financial obligations to ensure sustainable operations and financial health in the future.
Peer comparison
Dec 31, 2024