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LHC Group (LHC Group) Interest Coverage : 1.43 (As of Dec. 2022)


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What is LHC Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. LHC Group's Operating Income for the three months ended in Dec. 2022 was $17 Mil. LHC Group's Interest Expense for the three months ended in Dec. 2022 was $-12 Mil. LHC Group's interest coverage for the quarter that ended in Dec. 2022 was 1.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for LHC Group's Interest Coverage or its related term are showing as below:

LHCG' s Interest Coverage Range Over the Past 10 Years
Min: 3.81   Med: 23.22   Max: 43.58
Current: 3.81


LHCG's Interest Coverage is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 9.08 vs LHCG: 3.81

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


LHC Group Interest Coverage Historical Data

The historical data trend for LHC Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

LHC Group Interest Coverage Chart

LHC Group Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.95 14.28 43.58 43.01 3.81

LHC Group Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.42 8.81 4.04 4.43 1.43

Competitive Comparison of LHC Group's Interest Coverage

For the Medical Care Facilities subindustry, LHC Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LHC Group's Interest Coverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, LHC Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where LHC Group's Interest Coverage falls into.



LHC Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

LHC Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, LHC Group's Interest Expense was $-31 Mil. Its Operating Income was $119 Mil. And its Long-Term Debt & Capital Lease Obligation was $808 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*119.374/-31.311
=3.81

LHC Group's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, LHC Group's Interest Expense was $-12 Mil. Its Operating Income was $17 Mil. And its Long-Term Debt & Capital Lease Obligation was $808 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2022 )/Interest Expense (Q: Dec. 2022 )
=-1*16.666/-11.68
=1.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


LHC Group  (NAS:LHCG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


LHC Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of LHC Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


LHC Group (LHC Group) Business Description

Traded in Other Exchanges
N/A
Address
901 Hugh Wallis Road South, Lafayette, LA, USA, 70508
LHC Group Inc provides post-acute health care services to patients through its home nursing agencies, community-based services agencies, hospice agencies, and long-term acute care hospitals. The company's home health service locations offer a wide range of services, including skilled nursing, medically-oriented social services and physical, occupational, and speech therapy. Its hospices provide end-of-life care to patients with terminal illnesses through interdisciplinary teams of physicians, nurses, home health aides, counselors, and volunteers. Its other service segments are Home and community based, Facility-based, Hospice and Healthcare Innovations. The company derives most of its revenues from the Home health services.
Executives
Nicholas Iii Gachassin officer: EVP, General Counsel 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508
Dale Mackel other: CFO 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508-2511
Reed W Earl Iii director 9510 OMSBY SLATION ROAD, STE 300, LOIISVILLE KY 40223
Kimberly S Seymour other: SVP, Chief Accounting Officer 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508
Tricia Nguyen other: EVP, Chief Medical Officer 1801 KIRA COURT, ARLINGTON TX 76006
Mcquiddy Collin other: SVP, Chief Accounting Officer 901 HUGH WALLIS ROAD S, LAFAYETTE LA 70508
Donald Dwayne Stelly officer: Senior Vice President 420 WEST PINHOOK ROAD, SUITE A, LAFAYETTE LA 70503
John L Indest director, officer: COO of Home, Senior V.P. 420 WEST PINHOOK ROAD, SUITE A, LAFAYETTE LA 70503
Ronald T Nixon director 1375 ENCLAVE PKWY, HOUSTON TX 77077
Keith G Myers director, 10 percent owner, officer: CEO and President 901 HUGH WALLIS RD S, LAFAYETTE LA 70508
Joshua L. Proffitt officer: Executive Vice President 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508
Teri G. Fontenot director 18933 EAST PINNACLE CIRCLE, BATON ROUGE LA 70634
Tyree G Wilburn director
Jeff Reibel officer: See Remarks 9510 ORMSBY STATION ROAD, SUITE 300, LOUISVILLE KY 40223
Bruce D Greenstein officer: Chief Innovation Officer 901 HUGH WALLIS ROAD SOUTH, LAFAYETTE LA 70508