United Therapeutics Corporation (UTHR)
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 | 1,581,900 | 1,333,600 | 989,000 | 686,900 | 596,400 |
Interest expense | US$ in thousands | 42,900 | 59,300 | 32,400 | 18,600 | 23,500 |
Interest coverage | 36.87 | 22.49 | 30.52 | 36.93 | 25.38 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,581,900K ÷ $42,900K
= 36.87
United Therapeutics Corporation has shown a consistently high level of interest coverage over the past five years, with ratios ranging from 22.49 to 36.93. This indicates that the company has been able to comfortably meet its interest obligations through its operating income. The highest ratio of 36.93 achieved on December 31, 2021, demonstrates a strong ability to service its debt through its earnings. The consistent performance in interest coverage over the years is a positive sign of the company's financial health and ability to manage its debt effectively.
Peer comparison
Dec 31, 2024
Company name
Symbol
Interest coverage
United Therapeutics Corporation
UTHR
36.87
Abbott Laboratories
ABT
13.62
AbbVie Inc
ABBV
2.32
ACADIA Pharmaceuticals Inc
ACAD
—
Alkermes Plc
ALKS
18.63
Amphastar P
AMPH
30.07
ANI Pharmaceuticals Inc
ANIP
-0.26
Arcus Biosciences Inc
RCUS
-165.00
Biomarin Pharmaceutical Inc
BMRN
39.24
Bristol-Myers Squibb Company
BMY
-6.45
Catalyst Pharmaceuticals Inc
CPRX
—