Molina Healthcare Inc (MOH)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,059,000 | 1,097,000 | 1,127,000 | 1,185,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 87,000 | 91,000 | 95,000 | 105,000 |
| Interest coverage | 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 | 12.17 | 12.05 | 11.86 | 11.29 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,573,000K ÷ $109,000K
= 14.43
Molina Healthcare Inc's interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating a strong ability to meet its interest obligations. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes (EBIT).
The interest coverage ratio has improved from 9.36 in Q1 2022 to 15.61 in Q4 2023, signaling a significant enhancement in the company's financial health and stability. This consistent increase in the ratio suggests that Molina Healthcare Inc has been generating sufficient earnings to comfortably cover its interest payments, providing a cushion against any potential financial distress.
Overall, Molina Healthcare Inc's interest coverage ratio reveals a positive financial performance, highlighting its ability to manage its interest expenses effectively and maintain financial solvency.
Peer comparison
Dec 31, 2023