Molina Healthcare Inc (MOH)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,707,000 | 1,573,000 | 1,173,000 | 995,000 | 1,063,000 |
| Interest expense | US$ in thousands | 118,000 | 109,000 | 110,000 | 120,000 | 102,000 |
| Interest coverage | 14.47 | 14.43 | 10.66 | 8.29 | 10.42 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,707,000K ÷ $118,000K
= 14.47
Molina Healthcare Inc's interest coverage ratio has shown some fluctuations over the past five years. The interest coverage ratio decreased from 10.42 in December 31, 2020, to 8.29 in December 31, 2021, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income during that period.
However, the interest coverage ratio improved in the subsequent years, reaching 10.66 in December 31, 2022, 14.43 in December 31, 2023, and 14.47 in December 31, 2024. These higher ratios suggest that Molina Healthcare Inc's ability to cover its interest payments with its operating income has strengthened, indicating a healthier financial position in those years.
Overall, despite the initial dip in 2021, Molina Healthcare Inc's interest coverage has generally improved over the five-year period, reflecting a positive trend in the company's ability to meet its interest obligations comfortably. The increasing trend in the later years indicates enhanced financial stability and liquidity, which can be reassuring to investors and creditors.
Peer comparison
Dec 31, 2024