US Physicalrapy Inc (USPH)
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 | 52,061 | 59,735 | 58,749 | 58,767 | 56,801 | 66,472 | 68,509 | 70,659 | 70,649 | 72,386 | 75,389 | 63,421 | 52,413 | 45,121 | 37,987 | 48,270 | 55,765 | 58,263 | 57,134 | 49,647 |
| Interest expense (ttm) | US$ in thousands | 9,304 | 9,533 | 9,445 | 7,799 | 5,779 | 3,731 | 1,986 | 1,236 | 942 | 954 | 1,037 | 1,453 | 1,634 | 1,988 | 2,194 | 2,148 | 2,079 | 1,887 | 1,909 | 1,847 |
| Interest coverage | 5.60 | 6.27 | 6.22 | 7.54 | 9.83 | 17.82 | 34.50 | 57.17 | 75.00 | 75.88 | 72.70 | 43.65 | 32.08 | 22.70 | 17.31 | 22.47 | 26.82 | 30.88 | 29.93 | 26.88 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $52,061K ÷ $9,304K
= 5.60
The interest coverage ratio for U.S. Physical Therapy, Inc. has shown fluctuations over the past eight quarters. The company's interest coverage ratio has ranged from a low of 7.30 in Q2 2023 to a high of 57.53 in Q1 2022. Generally, a higher interest coverage ratio indicates that the company is better able to meet its interest obligations using its operating income.
In the most recent quarter, Q4 2023, the interest coverage ratio was 12.75, indicating a strong ability to cover interest payments with operating income. However, there was a notable decrease from the previous quarter, Q3 2023, where the interest coverage ratio was 8.89. This decline may raise concerns about the company's ability to meet its interest expenses in the short term.
Overall, U.S. Physical Therapy, Inc. has demonstrated a varying ability to cover its interest expenses over the past quarters. It is important for investors and stakeholders to continue monitoring the company's interest coverage ratio to assess its financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2023