Privia Health Group Inc (PRVA)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 16,982 | 13,154 | 12,877 | 14,758 | 20,649 | 21,478 | 11,368 | -861 | -19,122 | -40,718 | -48,952 | -236,889 | -217,435 | -193,924 | -172,573 | 26,794 | 25,394 |
| Interest expense (ttm) | US$ in thousands | 0 | 2,848,000 | 2,850,894 | 2,851,711 | 2,853,524 | 6,676 | 4,067 | 3,913 | 2,332 | 1,365 | 1,372 | 1,011 | 1,070 | 1,322 | 1,534 | 1,741 | 1,917 |
| Interest coverage | — | 0.00 | 0.00 | 0.01 | 0.01 | 3.22 | 2.80 | -0.22 | -8.20 | -29.83 | -35.68 | -234.31 | -203.21 | -146.69 | -112.50 | 15.39 | 13.25 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $16,982K ÷ $0K
= —
Interest coverage is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio is generally considered favorable as it suggests the company is generating sufficient income to cover its interest payments.
Analyzing the interest coverage of Privia Health Group Inc based on the provided data shows a fluctuating trend over the evaluated period. As of December 31, 2020, the interest coverage ratio stood at 13.25, indicating the company generated earnings more than 13 times its interest expenses, reflecting a healthy financial position.
Subsequently, the interest coverage ratio improved further by March 31, 2021, reaching 15.39, showing an even stronger capacity to cover interest obligations. However, from June 30, 2021, onwards, the interest coverage ratio turned negative, indicating that the company's EBIT was insufficient to cover its interest expenses in those periods.
The negative interest coverage ratios reported for the following quarters until December 31, 2024, reveal a concerning financial situation where the company's earnings were insufficient to cover its interest payments. It suggests a heightened risk of default on debt obligations and financial distress if this trend continues without improvement.
In conclusion, the interest coverage trend of Privia Health Group Inc displayed periods of strong coverage followed by a deterioration leading to negative ratios, which may raise concerns about the company's financial health and ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2024