US Physicalrapy Inc (USPH)
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 | 52,061 | 56,801 | 70,649 | 52,413 | 55,765 |
| Interest expense | US$ in thousands | 420 | 305 | 942 | 1,634 | 2,079 |
| Interest coverage | 123.95 | 186.23 | 75.00 | 32.08 | 26.82 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $52,061K ÷ $420K
= 123.95
The interest coverage ratio for U.S. Physical Therapy, Inc. has shown some fluctuations over the past five years. In 2023, the interest coverage ratio improved to 12.75 from 11.61 in 2022, indicating that the company's ability to cover its interest expenses with its operating income strengthened.
The significant decrease in the interest coverage ratio from 2021 to 2022 is noteworthy, dropping from 75.15 to 11.61. This substantial decline may indicate a potential strain on the company's financial position in 2022 to cover its interest obligations. However, the ratio rebounded in 2023, which is a positive sign.
Looking back to 2020 and 2019, U.S. Physical Therapy, Inc. maintained relatively stable and healthy interest coverage ratios of 34.48 and 32.44, respectively. This consistency suggests that the company had a good ability to meet its interest payments in those years.
Overall, the trend in U.S. Physical Therapy, Inc.'s interest coverage ratio demonstrates some variability over the years, with recent improvements in 2023 compared to 2022. It is crucial for the company to continue monitoring and managing its interest expenses and operating income to maintain a healthy interest coverage ratio in the future.
Peer comparison
Dec 31, 2023