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.