United Therapeutics Corporation (UTHR)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,534,900	1,441,000	1,396,400	1,426,378	1,333,436	1,213,981	1,194,454	1,013,990	1,022,572	976,656	863,429	929,859	651,864	625,880	643,681	559,886	708,094	667,203	619,311	740,221
Interest expense (ttm)	US$ in thousands	42,900	50,100	55,600	58,800	59,300	56,500	50,100	41,500	32,400	24,800	20,200	18,700	18,600	18,700	19,000	19,900	23,500	28,700	35,500	42,100
Interest coverage		35.78	28.76	25.12	24.26	22.49	21.49	23.84	24.43	31.56	39.38	42.74	49.73	35.05	33.47	33.88	28.13	30.13	23.25	17.45	17.58

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,534,900K ÷ $42,900K
= 35.78

United Therapeutics Corporation has consistently maintained a strong interest coverage ratio over the past five years, indicating the company's ability to comfortably meet its interest payment obligations. The interest coverage ratio has improved steadily from approximately 17.58 in March 2020 to 35.78 in December 2024. This upward trend reflects the company's growing earnings capacity relative to its interest expenses. The peak interest coverage ratio of 49.73 in March 2022 suggests a particularly robust ability to cover interest costs. Despite a slight decline in the ratio in more recent quarters, United Therapeutics Corporation's interest coverage remains healthy, indicating a strong financial position and ability to manage debt obligations effectively.