Option Care Health Inc (OPCH)
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 | 409,990 | 259,562 | 183,501 | 102,527 | -4,470 |
| Interest expense | US$ in thousands | 51,248 | 53,806 | 67,003 | 107,770 | 73,724 |
| Interest coverage | 8.00 | 4.82 | 2.74 | 0.95 | -0.06 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $409,990K ÷ $51,248K
= 8.00
Option Care Health Inc.'s interest coverage has shown a positive trend over the past five years, reflecting the company's improving ability to cover its interest expenses with operating income. The interest coverage ratio has consistently increased from 0.03 in 2019 to 6.25 in 2023. This indicates that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest payments, providing a buffer against potential financial difficulties. The significant improvement in the interest coverage ratio over the years suggests that Option Care Health Inc. has become more efficient in managing its interest obligations and is in a stronger financial position to meet its debt commitments.
Peer comparison
Dec 31, 2023