Select Medical Holdings (SEM)
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 | 524,755 | 499,251 | 473,649 | 433,646 | 390,658 | 382,333 | 432,160 | 580,544 | 667,983 | 740,741 | 744,852 | 592,741 | 523,873 | 463,629 | 419,015 | 423,769 | 412,737 | 411,458 | 411,189 | 411,859 |
| Interest expense (ttm) | US$ in thousands | 198,639 | 195,180 | 190,113 | 182,168 | 169,111 | 155,640 | 144,261 | 137,097 | 135,985 | 137,627 | 137,828 | 141,306 | 153,011 | 161,458 | 181,768 | 195,866 | 200,570 | 207,113 | 203,446 | 202,141 |
| Interest coverage | 2.64 | 2.56 | 2.49 | 2.38 | 2.31 | 2.46 | 3.00 | 4.23 | 4.91 | 5.38 | 5.40 | 4.19 | 3.42 | 2.87 | 2.31 | 2.16 | 2.06 | 1.99 | 2.02 | 2.04 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $524,755K ÷ $198,639K
= 2.64
Select Medical Holdings Corporation's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 2.37 to 4.00. This ratio indicates the company's ability to cover its interest expenses with operating income. The higher the ratio, the better the company is able to meet its interest obligations.
In the most recent quarter (Q4 2023), the interest coverage ratio was 2.99, showing a slight increase from the previous quarter. This suggests that Select Medical Holdings Corporation's operating income continues to comfortably cover its interest expenses.
Overall, the trend in Select Medical Holdings Corporation's interest coverage ratio indicates that the company is managing its interest obligations effectively and has a consistent ability to meet its debt servicing requirements. However, analysts should continue to monitor this ratio to ensure that it remains at a healthy level in the future.
Peer comparison
Dec 31, 2023