Molina Healthcare Inc (MOH)
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 | 1,573,000 | 1,173,000 | 995,000 | 1,063,000 | 1,059,000 |
| Interest expense | US$ in thousands | 109,000 | 110,000 | 120,000 | 102,000 | 87,000 |
| Interest coverage | 14.43 | 10.66 | 8.29 | 10.42 | 12.17 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,573,000K ÷ $109,000K
= 14.43
Molina Healthcare Inc's interest coverage ratio has shown a generally increasing trend over the past five years. The ratio increased from 12.07 in 2019 to 15.61 in 2023, indicating the company's improved ability to cover its interest expenses with operating income. A higher interest coverage ratio suggests that Molina Healthcare is more capable of meeting its interest obligations from its earnings. This trend indicates that the company has been effectively managing its interest expenses relative to its operating income, which is a positive sign for investors and creditors. The consistent improvement in the interest coverage ratio reflects Molina Healthcare's strengthening financial position over the years.
Peer comparison
Dec 31, 2023