Select Medical Holdings (SEM)
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 | 304,885 | 648,741 | 607,306 | 619,032 | 574,657 | 545,822 | 515,898 | 473,327 | 422,696 | 403,743 | 452,718 | 511,465 | 618,763 | 678,232 | 686,998 | 565,647 | 477,645 | 462,869 | 428,483 | 496,229 |
| Interest expense (ttm) | US$ in thousands | 171,860 | 194,109 | 188,941 | 200,831 | 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 |
| Interest coverage | 1.77 | 3.34 | 3.21 | 3.08 | 2.89 | 2.80 | 2.71 | 2.60 | 2.50 | 2.59 | 3.14 | 3.73 | 4.55 | 4.93 | 4.98 | 4.00 | 3.12 | 2.87 | 2.36 | 2.53 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $304,885K ÷ $171,860K
= 1.77
Select Medical Holdings' interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, has varied over the past several quarters.
From March 31, 2020, to September 30, 2021, the interest coverage ratio showed a generally positive trend, increasing from 2.53 to 4.93. This indicates that the company's operating income was sufficient to cover its interest expenses comfortably during this period.
However, from December 31, 2021, to December 31, 2024, the interest coverage ratio started to decline gradually from 4.55 to 1.77. This downward trend suggests that Select Medical Holdings may be experiencing some challenges in generating enough operating income to cover its interest obligations.
Overall, while the company's interest coverage ratio has fluctuated, it is important to closely monitor this trend to ensure that Select Medical Holdings can continue to meet its interest payments and maintain financial stability.
Peer comparison
Dec 31, 2024