Option Care Health Inc (OPCH)
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 | 330,588 | 323,216 | 315,308 | 406,051 | 407,436 | 404,140 | 387,396 | 276,872 | 260,665 | 240,419 | 227,776 | 212,418 | 171,958 | 155,287 | 138,183 | 115,855 | 110,755 | 103,893 | 42,512 | 24,150 |
| Interest expense (ttm) | US$ in thousands | 49,029 | 53,554 | 52,995 | 53,588 | 54,220 | 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 | 94,841 |
| Interest coverage | 6.74 | 6.04 | 5.95 | 7.58 | 7.51 | 7.54 | 6.94 | 5.00 | 4.84 | 4.51 | 4.12 | 3.55 | 2.57 | 2.03 | 1.63 | 1.17 | 1.03 | 0.91 | 0.38 | 0.25 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $330,588K ÷ $49,029K
= 6.74
Option Care Health Inc's interest coverage ratio has shown a positive trend over the analyzed period starting from March 31, 2020, where it was extremely low at 0.25, indicating that the company's ability to cover its interest expenses was weak. The ratio gradually improved over the subsequent quarters, reaching 6.94 as of June 30, 2023, demonstrating a significant enhancement in the company's ability to cover its interest obligations.
However, there was a slight decline in the interest coverage ratio in the following quarters, dropping to 5.95 as of June 30, 2024. Although the ratio decreased, it still indicates that the company's earnings before interest and taxes (EBIT) can cover its interest expenses nearly six times over, providing a reasonable cushion for servicing its debt obligations.
Overall, the trend in Option Care Health Inc's interest coverage ratio reflects a generally positive financial position, as the company has strengthened its ability to meet its interest payments over time. Maintaining a healthy interest coverage ratio is crucial for ensuring the company's financial stability and ability to meet its debt obligations comfortably.
Peer comparison
Dec 31, 2024