UnitedHealth Group Incorporated (UNH)
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 | 31,595,000 | 27,916,000 | 23,523,000 | 22,039,000 | 19,285,000 |
| Interest expense | US$ in thousands | 3,246,000 | 2,092,000 | 1,660,000 | 1,663,000 | 1,704,000 |
| Interest coverage | 9.73 | 13.34 | 14.17 | 13.25 | 11.32 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $31,595,000K ÷ $3,246,000K
= 9.73
Interest coverage is a financial ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally seen as favorable, as it suggests that the company is more capable of servicing its debt obligations.
Examining Unitedhealth Group Inc's interest coverage over the past five years reveals a generally healthy trend. The interest coverage ratio has ranged from 9.97 to 14.44 during this period. Specifically, the ratio was at its lowest in 2023 at 9.97 and peaked in 2021 at 14.44, indicative of the company's ability to comfortably meet its interest payment obligations from its operating earnings.
Overall, Unitedhealth Group Inc's interest coverage ratios demonstrate a consistent ability to cover its interest expenses with operating income, with ratios comfortably above 1 indicating a sufficient buffer to maintain financial stability and meet debt obligations.
Peer comparison
Dec 31, 2023