Molina Healthcare Inc (MOH)
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 | 1,707,000 | 1,643,000 | 1,535,000 | 1,544,000 | 1,573,000 | 1,362,000 | 1,338,000 | 1,256,000 | 1,173,000 | 1,234,000 | 1,120,000 | 1,032,000 | 995,000 | 910,000 | 978,000 | 1,124,000 | 1,063,000 | 1,224,000 | 1,190,000 | 1,050,000 |
| Interest expense (ttm) | US$ in thousands | 118,000 | 111,000 | 109,000 | 108,000 | 109,000 | 109,000 | 110,000 | 110,000 | 110,000 | 113,000 | 115,000 | 118,000 | 120,000 | 120,000 | 117,000 | 111,000 | 102,000 | 92,000 | 87,000 | 85,000 |
| Interest coverage | 14.47 | 14.80 | 14.08 | 14.30 | 14.43 | 12.50 | 12.16 | 11.42 | 10.66 | 10.92 | 9.74 | 8.75 | 8.29 | 7.58 | 8.36 | 10.13 | 10.42 | 13.30 | 13.68 | 12.35 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,707,000K ÷ $118,000K
= 14.47
The interest coverage ratio for Molina Healthcare Inc has displayed some fluctuations over the observed period, indicating the company's ability to meet its interest obligations from its operating income.
From March 31, 2020, to December 31, 2021, the interest coverage ratio remained comfortably above 10, indicating a strong ability to cover interest payments. However, there was a noticeable decline in the ratio from June 30, 2021, to December 31, 2021, suggesting a potential concern regarding the company's ability to cover interest expenses.
Subsequently, from March 31, 2022, to December 31, 2024, the interest coverage ratio fluctuated within a range of 8.29 to 14.80. While the ratio increased towards the end of the observed period, it is essential for stakeholders to monitor this metric closely to ensure the company can sustainably cover its interest obligations.
Overall, the trend in Molina Healthcare Inc's interest coverage ratio indicates the importance of closely monitoring the company's operating performance and financial health to ensure it can meet its debt obligations effectively.
Peer comparison
Dec 31, 2024