UnitedHealth Group Incorporated (UNH)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,670,000 | 28,545,000 | 28,435,000 | 23,970,000 | 22,405,000 |
| Interest expense | US$ in thousands | 3,906,000 | 3,246,000 | 2,092,000 | 1,660,000 | 1,663,000 |
| Interest coverage | 1.45 | 8.79 | 13.59 | 14.44 | 13.47 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,670,000K ÷ $3,906,000K
= 1.45
UnitedHealth Group Incorporated's interest coverage ratio has shown fluctuating trends over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company has more earnings available to cover its interest expenses.
As of December 31, 2020, UnitedHealth Group's interest coverage ratio was 13.47, demonstrating a strong ability to cover its interest payments. This ratio improved slightly to 14.44 by December 31, 2021, indicating an even better capacity to meet interest obligations.
However, there was a slight dip in the interest coverage ratio to 13.59 by December 31, 2022, which is still considered healthy. The ratio then experienced a more significant decrease to 8.79 by December 31, 2023, which may raise some concerns about the company's ability to cover its interest expenses.
The most recent data point, as of December 31, 2024, shows a significant decline in the interest coverage ratio to 1.45. This sharp decrease indicates a potential strain on UnitedHealth Group's ability to cover its interest payments with its earnings.
Overall, UnitedHealth Group's interest coverage ratio has historically been strong, but the significant drop in 2024 suggests a need for further analysis and monitoring of the company's financial health and debt obligations.
Peer comparison
Dec 31, 2024