Select Medical Holdings (SEM)
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 | 524,755 | 390,658 | 667,983 | 523,873 | 412,737 |
| Interest expense | US$ in thousands | 198,639 | 169,111 | 135,985 | 153,011 | 200,570 |
| Interest coverage | 2.64 | 2.31 | 4.91 | 3.42 | 2.06 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $524,755K ÷ $198,639K
= 2.64
Select Medical Holdings Corporation's interest coverage ratio has fluctuated over the past five years. The company's interest coverage ratio was 2.99 in 2023, which indicates that the company's operating income was almost three times its interest expense for that year. This represents an improvement compared to the previous year, where the interest coverage ratio was 2.37.
In 2021, the interest coverage ratio was relatively high at 4.70, suggesting that the company had a strong ability to cover its interest expenses with its operating income. The ratio decreased to 3.31 in 2020 but remained above 3, indicating a comfortable level of coverage.
The lowest interest coverage ratio over the past five years was 2.48 in 2019, indicating that the company's ability to cover its interest expenses was relatively weaker that year.
Overall, Select Medical Holdings Corporation's interest coverage has shown some variability, but in general, the company has been able to cover its interest expenses with its operating income, with some fluctuations in performance.
Peer comparison
Dec 31, 2023