National HealthCare Corporation (NHC)
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 | 140,384 | 169,090 | 123,594 | 110,036 | 90,572 | 61,714 | 43,909 | 25,843 | 30,262 | 42,978 | 39,170 | 142,318 | 150,386 | 166,798 | 187,563 | 118,512 | 53,703 | 35,287 | 45,154 | 25,733 |
| Interest expense (ttm) | US$ in thousands | 4,135 | 1,844 | 179 | 272 | 324 | 380 | 440 | 496 | 563 | 639 | 700 | 766 | 845 | 906 | 993 | 1,231 | 1,399 | 1,641 | 2,120 | 2,621 |
| Interest coverage | 33.95 | 91.70 | 690.47 | 404.54 | 279.54 | 162.41 | 99.79 | 52.10 | 53.75 | 67.26 | 55.96 | 185.79 | 177.97 | 184.10 | 188.89 | 96.27 | 38.39 | 21.50 | 21.30 | 9.82 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $140,384K ÷ $4,135K
= 33.95
National HealthCare Corporation's interest coverage ratio has fluctuated over the period from March 2020 to December 2024. The interest coverage ratio represents the company's ability to meet its interest obligations from its operating income. It is calculated by dividing operating income by interest expense.
From March 2020 to December 2024, we observe a general increasing trend in the interest coverage ratio, with some fluctuations. The ratio was consistently below 100 in the initial periods, indicating that the company's operating income was not sufficient to cover its interest expenses.
However, starting from March 2021, the interest coverage ratio began to significantly improve, reaching its peak in December 2024 at 690.47. This indicates a substantial improvement in the company's ability to cover its interest payments with its operating income.
The spike in the interest coverage ratio in June 2024 to 690.47 suggests a significant increase in operating income relative to interest expenses during that period. However, it is important to note that there was a sharp decline in the ratio in September 2024, indicating a decrease in the company's ability to cover its interest payments.
Overall, National HealthCare Corporation's interest coverage ratio has shown improvement over the period under review, albeit with some fluctuations. Investors and stakeholders should continue to monitor the trend to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024