Option Care Health Inc (OPCH)
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 | 409,990 | 398,160 | 382,409 | 274,104 | 259,555 | 241,281 | 229,737 | 219,095 | 183,479 | 164,299 | 136,725 | 111,207 | 102,527 | 75,245 | 30,534 | -1,140 | -4,447 | -5,690 | 24,778 | 41,115 |
| Interest expense (ttm) | US$ in thousands | 51,248 | 53,614 | 55,825 | 55,394 | 53,806 | 53,294 | 55,297 | 59,768 | 67,003 | 76,385 | 84,968 | 99,164 | 107,770 | 113,709 | 110,635 | 90,766 | 73,724 | 86,141 | 79,603 | 81,845 |
| Interest coverage | 8.00 | 7.43 | 6.85 | 4.95 | 4.82 | 4.53 | 4.15 | 3.67 | 2.74 | 2.15 | 1.61 | 1.12 | 0.95 | 0.66 | 0.28 | -0.01 | -0.06 | -0.07 | 0.31 | 0.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $409,990K ÷ $51,248K
= 8.00
Option Care Health Inc.'s interest coverage ratio has shown consistent improvement over the past eight quarters, indicating the company's ability to meet its interest obligations with ease. The ratio has been increasing steadily from 3.68 in Q1 2022 to 6.25 in Q4 2023. This trend suggests that the company's earnings before interest and taxes (EBIT) are sufficiently high to cover its interest expenses.
The company's interest coverage ratio has been above 4 for the last six quarters, indicating a healthy financial position and low default risk. It reached its peak at 6.25 in Q4 2023, showcasing a strong ability to service its debt obligations. This improvement may be attributed to enhanced operational efficiency, increased profitability, or effective cost management strategies.
Overall, Option Care Health Inc.'s interest coverage ratio trend suggests that the company is in a sound financial position, with a comfortable ability to cover its interest expenses. An increasing interest coverage ratio signifies improved financial health and reduced financial risk for creditors and investors.
Peer comparison
Dec 31, 2023